Overview of the Temu Data Breach Class Action Lawsuit
Temu, the rapidly growing online retailer, is currently facing a class action lawsuit that accuses the company of failing to protect its customers’ personal and financial information. The complaint claims that Temu exhibited significant negligence in maintaining security standards, resulting in the compromise of customers’ financial data. Plaintiffs allege that the company’s efforts to cut costs included inadequate security measures that could have prevented or reduced the data breach. Furthermore, the lawsuit asserts that Temu did not promptly disclose the full extent of the breach or inform affected customers in a timely manner.
The lawsuit also includes allegations that Temu engaged in wiretapping electronic communications of visitors to its website. According to the complaint, the app has the capability to access users’ cameras and microphones.
This case has been filed in the U.S. District Court for the Eastern District of New York, with the main argument centered on Temu’s alleged violations of industry best practices and standards for safeguarding customer information.
The complaint highlights concerns about the in-app browser, which reportedly includes JavaScript code designed to monitor users’ activity on third-party websites, collecting highly sensitive information through covert tracking.
Additionally, the complaint points out that data belonging to minors, such as phone numbers and email addresses, became more public when young users switched from personal to business accounts to access analytical tools.
The lead plaintiff claims that Temu collected his data without his consent when he used the app to click links to external sites and complete purchases, including entering his credit card details.
The Better Business Bureau (BBB) recently issued warnings about Temu’s data breaches, as reported by NBC Chicago. The BBB has received over 900 complaints regarding unauthorized withdrawals from bank accounts following purchases made through Temu.
Temu has faced various legal issues recently, including a lawsuit against its competitor Shein. In July, Temu accused Shein of pressuring suppliers not to work with them, while Shein filed a counter-lawsuit in December 2022, alleging that Temu imitated its practices on social media to mislead users into downloading the Temu app. Both companies are currently under congressional investigation concerning their sourcing and labor practices.