Dive Brief:
- Fast fashion giant Temu is facing a class action lawsuit that alleges it failed to secure customers’ personal and financial data, according to a legal complaint filed Wednesday.
- Attorneys representing the plaintiffs argued that Temu “grossly failed to comply with security standards and allowed its customers’ financial information to be compromised, all in an effort to save money by cutting corners on security measures that could have prevented or mitigated the Breach.” It further states that Temu didn’t disclose the extent of a data breach and notify customers affected by it in a timely manner.
- Temu is also accused of wiretapping the electronic communications of its website visitors. The complaint states that Temu references its access to users’ cameras and microphones whenever they’re using the app.
Dive Insight:
The case, filed in the Eastern District of New York United States District Court, alleges that Temu knowingly violated its obligations to abide by best practices and industry standards that protect the personal information of its customers.
It alleges Temu’s in-app browser inserts a JavaScript code which has a “clear purpose” of tracking “every detail about Temu users’ website activity.”
“Through the use of its in-app browser, Temu has secretly and invasively amassed massive amounts of extremely private information and data about its users by tracking their activity on third-party websites,” the complaint stated.
The complaint names Eric Hu as its lead plaintiff. While using the Temu app, the complaint states that Hu clicked on links to external, third-party websites where he completed his purchase and entered his credit card information. Temu allegedly collected Hu’s data from these third-party websites “without his knowledge or consent.”
The Better Business Bureau warned of Temu data breaches in a television report from NBC Chicago last week, which was referenced in the complaint. The BBB has received more than 900 complaints of unauthorized withdrawals from bank accounts after purchasing with Temu, the complaint states.
Temu didn’t respond to Fashion Dive’s request for comment ahead of press time.
The fast fashion company has faced several legal challenges recently, including two with its rival Shein. In July, Temu sued Shein for allegedly coercing its suppliers to not do business with Temu. In December 2022, Shein sued Temu for allegedly mimicking Shein on social media and tricking users into downloading the Temu app.
Both companies are similarly under congressional investigation due to their sourcing and labor practices.
