Chicago (CBS) – Customers can get great deals from the latest online retailer Temu.
However, a recently filed class action lawsuit alleges that Temu gets more in return from its customers because they are often unaware of the company’s data collection and sharing policies and practices.
class action lawsuit
The most recent class action lawsuit was filed on November 3, 2023 in the Northern District of Illinois.
The complaint was filed by Hagens Berman LLP on behalf of seven named plaintiffs from Illinois, California, Massachusetts, and Virginia, as well as seven anonymous similarly situated plaintiffs.
The lawsuit alleges that Temu violates customers’ privacy rights by collecting personal data and uses “deceptive” and “unscrupulous” practices to gain access to that data.
Lawyers for the plaintiffs in the lawsuit said their claims experts, including their own independent experts, investigated the Temu app and found that “this app contains noxious and dangerous malware and spyware activities on users’ devices.” tools were intentionally and purposefully loaded.” Temu misled people about how their data was used. ”
“We believe it was intentional,” said Jeannie Evans, one of the attorneys representing the plaintiffs.
“Temu discusses how Temu requires at least 24 permissions for all kinds of information that an online shopping app does not need,” Evans said in the complaint.
According to the complaint, these permissions include access to Bluetooth and Wi-Fi network information and biometric data such as fingerprints.
A second class action lawsuit, filed in September 2023 in New York on behalf of plaintiff Eric Hu and others, alleges that Temu not only collected personal information from customers, but also failed to store it securely. It’s been criticized.
Hu v. Temu, et. It was for the purpose of doing so.”
The complaint goes on to say that many customers have reported to the Better Business Bureau that their credit card and banking information was sold or compromised after using these accounts with Temu.
Customer concerns
Miguel Koenig, a Michigan native, is not a member of either class action lawsuit.But he was first contacted after CBS 2 Investigators report Better Business Bureau (BBB) warns about Temu in September 2023.
At the time, the BBB issued a warning that Chinese company Temu was warning shoppers about customer complaints and privacy concerns. The BBB said that in his first 14 months in business he received 900 complaints.
Koenig said he downloaded the Temu app, created an account, and provided Temu with his bank account information to facilitate future purchases “so that I wouldn’t have to keep putting in my debit card.” Ta.
He purchased several products for about $45.
Then he said he noticed something strange. He composed an email he sent to Tem about a sudden and unknown charge on his bank account.
“There were about 17 different charges and about $2,300 was missing,” Koenig said.
He said he disputed these charges with the bank.
Mr. Koenig also complained that he was inundated with e-mails about credit offers from elsewhere rather than from Mr. Temm.
“So every day you get a letter saying, ‘You’re approved,’ but you didn’t sign up for nothing,” he said.
Lawyer Jeannie Evans says these are common problems.
“We have spoken to many members of the Temu platform and are hearing similar reports,” Evans said.
In the class action lawsuit, Evans’ company details how it believes such customer issues occur when shoppers download the app.
“It can collect contact information and text messages. It collects a lot of information that shopping apps need, like phone device identifiers and precise location data,” Evans said. “Our complaint alleges that much of this information the app collects is not disclosed in its privacy policy.”
Specifically, Evans said, “it could access your phone’s camera and microphone to collect biometric information, facial images, and voiceprints.”
Tim’s reply
Temu began operations in September 2022. Part of PDD Holdings.
CBS 2 referred questions to Temu for this story about its privacy policy and the lawsuits the company is facing. The company’s response, provided by a Temu spokesperson, is as follows:
“We categorically deny this allegation and intend to vigorously defend against these baseless lawsuits. This allegation parrots a report published by a short seller calling itself Grizzly Research. .This vendor has a clear incentive to depress TEM’s stock price through misinformation.”The report also includes a disclaimer that its contents are “not statements of fact.”
“The truth is that protecting your privacy is one of Temu’s core values. Our privacy practices comply with industry standards and are transparently disclosed in our Privacy Policy. Temu’s The app and website also have a “Permissions” section that clearly explains this. Device features that Temu can and cannot access.
“We do not sell customer data to third parties.”
