Class action lawsuit alleges Temu for sending unwanted promotional messages during business hours
Temu Faces Class Action Lawsuit Over Alleged Data Privacy Breaches
Fast fashion company Temu is embroiled in a new class action lawsuit, this time over claims of data privacy violations. The complaint, filed on Aug. 21 in the U.S. District Court for the Eastern District of California, alleges that Temu has been sending unsolicited text messages to consumers who have opted out, wiretapping electronic communications, and collecting biometric information such as facial characteristics, voiceprints, and fingerprints.
The lawsuit also accuses Temu of failing to maintain a stand-alone do-not-call list and providing inadequate training to its telemarketing personnel. Attorneys are seeking a jury trial and allege that Temu's behavior resulted in various forms of invasion of privacy and disruption.
This is not the first time Temu has faced allegations of data privacy issues. Last year, the company was accused of failing to secure its customers' personal and financial data, with the lawsuit claiming that Temu intentionally loaded dangerous malware and spyware onto users' devices. Another class action lawsuit related to data privacy is also ongoing.
The new lawsuit comes as Temu's holding company, PDD Holdings, reported 97.1 billion yuan in revenue for the second quarter. However, the announcement was followed by a 29% drop in the company's shares.
Despite these concerns, recent surveys have shown that Temu remains popular among budget-conscious consumers. According to a report from Omnisend, only 6% of surveyed U.S. consumers trust Temu, but 68% of surveyed consumers still shopped at Temu.
Temu has stated that it takes consumer protection seriously and believes the lawsuit is without merit. The company intends to defend its interests vigorously. The ongoing lawsuits against Temu for data privacy issues are a reminder for consumers to be cautious when sharing their personal information online and for companies to prioritise data security.
In a separate incident last month, Temu's holding company Whaleco Inc. was sued for sending promotional text messages to phone numbers on the national do-not-call registry, and that case is ongoing. It remains to be seen how these legal proceedings will unfold for Temu.
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