Temu, an online marketplace established by Chinese e-commerce firm PDD Holdings, has captured the attention of U.S. lawmakers following its Super Bowl advertisements. The company is under scrutiny for its ties to products linked to forced labor in Xinjiang and questionable data sharing practices. Temu also confronts possible tax and regulatory challenges. A group of Republican lawmakers urged CBS to cancel the airing of Temu's Super Bowl ad, accusing the company of repeatedly allowing illicit products to enter the U.S. market.
Despite the criticism, Temu went ahead with several Super Bowl ads, which enticed viewers to "shop like a billionaire" using its app. These ads were accompanied by the release of $15 million in coupons and giveaways related to the game. However, each of these ads cost the company approximately $7 million, reflecting the standard rate for 30-second advertising slots during the event.
Temu's controversial data practices and its involvement with forced labor in China led to Congressional members warning U.S. consumers about downloading the app. Senator Tom Cotton, a Republican from Arkansas, noted via a post previously made on Twitter that Temu, along with any Chinese tech company, is obligated to provide the China's Communist Party with unrestricted access to its data, deeming it unsuitable for business in the U.S. Representative Kat Cammack, a Republican from Florida, echoed these concerns, stating that the Super Bowl's airing of a Temu commercial should serve as an alert to all Americans. She highlighted Temu's ongoing lawsuit over stealing customer financial information and embedding spyware in their app, noting that all data collected is within the control of the Communist Party of China.
Temu is currently facing class action lawsuits in both Illinois and New York. These lawsuits allege that the company has deceptively harvested customer data, utilizing permissions that provided access to Bluetooth and Wi-Fi network data, as well as biometric data, and alleges insufficient data protection measures.
