Nebraska Accuses Temu of ‘Siphoning’ User Data, Fueling IP Theft
By Allison Grande
Law360 (June 12, 2025, 10:29 PM EDT) — Chinese bargain-shopping app Temu is allegedly unlawfully gathering sensitive information from minors and other users through secretly installed malware and allowing intellectual property infringement to thrive on its platform, Nebraska’s attorney general claimed in a sweeping new lawsuit.
In a 92-page complaint filed in Nebraska state court Wednesday, Nebraska Attorney General Mike Hilgers accused Temu and its parent company PDD Holdings Inc. of deceiving state residents and harming brands, businesses, and creators in multiple ways, including unlawfully harvesting data from children and other users, using misleading marketing and design practices to encourage purchases, and failing to stop rampant counterfeits on the platform.
“Temu has flooded the United States with cheap products, but those products come with a one-two punch to Americans,” Hilgers said in the complaint, which alleges violations of Nebraska’s Consumer Protection Act and Uniform Deceptive Trade Practices Act.
Temu responded by categorically denying the allegations and pledging to vigorously defend itself. “The allegations in the Nebraska attorney general's lawsuit are without merit and appear to be a rehash of misinformation circulated online, much of it originating from a short-seller,” a Temu spokesperson said. The company said it aims to help consumers access affordable products while providing growth opportunities for U.S. small businesses.
The complaint alleges that once a consumer downloads the Temu app, malware is secretly installed that bypasses device security protocols and grants the app unrestricted access to essentially all data on the phone, including photos, private messages, and information to track user movements. Even non-users may have their data collected merely by emailing or texting Temu users. The app reportedly uses sophisticated evasion techniques to make detection of this malware “almost impossible.”
The attorney general further alleges that Temu’s ties to the Chinese Communist Party increase the risk that personal data could be accessed by the Chinese government, due to Chinese laws requiring companies within the country to provide user data upon request. PDD Holdings, founded in China as Pinduoduo Inc., moved its principal executive offices to Dublin, Ireland, in February 2023 but continues significant operations in China.
Beyond data privacy concerns, the complaint claims Temu’s platform enables widespread IP theft, false advertising, misleading labeling, and counterfeit products. Nebraska brands like Union Pacific, Cabela’s, and Creighton Bluejays are allegedly misrepresented as authentic without proper recourse for rights holders. The complaint also points to low-quality or counterfeit goods, some allegedly produced via forced labor, manipulative pricing and incentivized reviews, inadequate return processes, deceptive “local” labeling, and misleading eco-friendly claims.
“Temu is putting Nebraskans’ privacy at risk and running a platform rife with deceptive listings, unlawful promotional practices, and products that rip off Nebraska brands and creations,” Hilgers said. The state seeks a court declaration that these practices are illegal, an injunction preventing further violations, and civil penalties, restitution, and damages to Nebraska residents.
This complaint echoes similar lawsuits filed by Arkansas and New York, targeting Temu for alleged data theft and violations of privacy laws.
Nebraska is represented by Anna M. Anderson, Benjamin Swanson, and Beatrice O. Strnad of the Attorney General’s Office; Brian E. McMath, Brian L. Moore, and Michaela Hohwieler of Nachawati Law Group; and David F. Slade of Wade Kilpela Slade. Counsel information for Temu was not immediately available.
The case is State of Nebraska ex rel. Michael T. Hilgers v. PDD Holdings Inc. f/k/a Pinduoduo Inc. et al., case number D02CI250002002, in the District Court of Lancaster County, Nebraska.
--Additional reporting by Rae Ann Varona and Joyce Hanson. Editing by Emily Kokoll.
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