Dallas – In a decisive move to protect Texans’ personal information and product safety, Attorney General Ken Paxton announced Friday that online marketplace Temu has agreed to a sweeping settlement with the state. The agreement, approved by a Collin County judge, requires Temu to pay $3 million and to submit to independent annual audits covering data handling, mobile‑app security, product testing, recalls and refunds.
Key Requirements for Temu
Under the court‑approved order, Temu must:
- Designate a U.S.–based compliance officer.
- Disclose any categories of Texas consumer data that could be shared outside the United States.
- Identify and delete data from accounts that have been inactive for 24 consecutive months, unless retention is legally required.
- Provide a “one‑click” link in its U.S. privacy policy so logged‑in users can easily delete their accounts.
- Hire an independent firm each year to test its mobile application for malware, spyware or unauthorized data‑collection code on versions sold through the Apple App Store and Google Play Store.
Failure to meet any audit standard could trigger an $8 million civil penalty for each failed annual audit. The injunction will remain in effect for four years, giving the court ongoing authority to enforce compliance.
Product‑Safety Safeguards
Temu is also subject to strict product‑safety rules. An independent firm must annually test a cross‑section of popular items for harmful substances such as lead, PFAS compounds, phthalates, formaldehyde and heavy metals. If a product exceeds federal safety limits, Temu must remove the listing within two business days, terminate the offending seller within five days, notify affected Texas customers and issue full refunds. Non‑compliance with the seller‑termination deadline carries a $600,000 civil penalty.
Before certain regulated goods can be listed for Texas buyers, sellers must submit compliance certificates, manufacturer identification, testing data and shipment information.
Broader Context
The settlement follows a broader Texas effort to curb technology tied to China. The Texas Department of Information Resources already lists PDD Holdings – the parent of Temu and Pinduoduo – among prohibited software and applications for state‑owned devices. Governor Greg Abbott expanded that list in January, adding Temu to the roster of Chinese platforms deemed a cybersecurity risk.
Paxton’s office reported that Temu had more than 82.4 million active U.S. users as of September 2023. While the judgment applies specifically to Texas consumers, it sets a precedent for how online marketplaces must treat personal data and product safety across the state.
Official Reaction
“This is a historic victory for data privacy, consumer protection, and Texans who deserve to know that the products they purchase are safe,” Paxton said in his announcement. The attorney general emphasized that the settlement reinforces Texas’ commitment to safeguarding families and upholding constitutional rights to privacy and safe commerce.
Industry observers note that the settlement could encourage other states to adopt similar safeguards, reinforcing a national trend toward stronger consumer‑protection enforcement against foreign‑owned e‑commerce platforms.
Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.
