Chinese discount marketplace Temu agreed to pay $3 million to settle Texas state data privacy claims. The deal also restricts how it handles personal customer information.
Enforcement targeted a massive footprint. As of September 2023, Temu counted more than 82.4 million active users across the United States.
Documents released October 16 show Temu agreed to store personal information on US servers. Transmissions to China must be limited strictly to details required to complete and deliver orders, such as shipping addresses.
State officials confirmed this is the first binding settlement where Temu accepted formal limits on cross-border data routing. Non-compliance carries real teeth. Texas can impose penalties of $8 million for each year a violation occurs.
Temu admitted no wrongdoing under the consent order. The company stated it “has come to an agreement to resolve this matter as we continue to focus on serving consumers and supporting businesses across Texas.”
The terms reach beyond digital privacy into physical supply chain liability. Temu must run annual independent safety audits to screen merchandise for hazardous chemicals and toxic materials. Regulators are focusing heavily on apparel and children’s goods.
When tests flag unsafe inventory, listings must come down immediately. The company must also terminate responsible merchants and their storefronts, alert affected Texas buyers, and process full refunds.
Attorney General Ken Paxton said the agreement forces Temu to run strict product audits while blocking unchecked harvesting of consumer data.
For cross-border operators in Guangzhou and Yiwu, the settlement alters the math of selling into North America.
Source link
