Arizona Sues Temu for Alleged Consumer Fraud and Data Misuse
Arizona has sued Temu, alleging the online marketplace misled consumers about how its mobile app collects personal data and how it advertises and sells merchandise. The complaint, filed by Attorney General Kristin Mayes, claims the company engaged in deceptive practices that violated the Arizona Consumer Fraud Act.
According to the filing, investigators found that the Temu app collects sensitive information such as precise location data, call-related details, lists of other installed apps, and audio accessed through the phone’s microphone. The State says these practices were not clearly described in the company’s privacy statements. The complaint also notes that Temu’s parent company has operations in mainland China, where local laws allow government access to business data, which Arizona argues increases the risks associated with undisclosed collection.
The lawsuit also challenges how Temu presents and sells merchandise. The complaint cites examples of sports apparel, musical accessories, and university-branded clothing advertised as authentic even though they were not licensed by the rights holders. According to the filing, these listings gave shoppers the impression that the items were genuine.
A separate set of allegations focuses on Temu’s promotional practices. The State describes complaints from Arizona consumers who faced unexpected charges tied to offers that appeared to be free or sharply discounted. Other consumers reported difficulty completing returns, including cases where promised free shipping did not apply to their shipments. The document also includes reports of items delivered and charged to customers despite not being ordered.
The filing further states that Temu’s product review system misled users. According to the complaint, some low ratings were automatically raised, and some reviews appeared in customers’ names before they had written any feedback. Arizona argues this made it harder for shoppers to judge product quality.
The lawsuit also refers to public reporting that certain goods sold on the platform may have been produced with forced labor in China’s Xinjiang region, where United States law bans imports linked to coercive labor. The State argues that Temu’s public claims about ethical sourcing would be misleading if those reports are accurate.
Another allegation concerns the company’s handling of customer disputes. Temu requires most complaints to go through binding arbitration, a private process outside the court system intended to resolve disagreements. The filing states that the company has refused to participate in thousands of arbitration cases that consumers attempted to file, which Arizona contends left customers without a workable way to address problems with their orders.
The lawsuit brings two causes of action under the Arizona Consumer Fraud Act. The law prohibits false statements and also bars companies from leaving out important information about the goods or services they sell. A company may violate the statute by making claims that are not true or by withholding details that an ordinary shopper would want to know. Because the law treats mobile apps as merchandise, Temu’s descriptions of how its app works and what information it collects must be accurate.
Arizona argues that Temu’s representations about data collection, product quality, pricing, and promotional terms fall under these rules because they influence how people use the app and what they decide to buy.
Temu has also faced other legal challenges involving its marketplace practices. Earlier this year, Twenty One Pilots and Brandy Melville each filed federal trademark lawsuits claiming the platform allowed counterfeit or imitation goods to be sold under their names, and the Justice Department recently secured a two-million-dollar penalty for the company’s violations of the INFORM Consumers Act, which sets transparency requirements for online marketplaces.
Cases brought under consumer fraud statutes often shape how companies disclose data practices and present their merchandise to customers. Attorney General Kristin Mayes argues that this lawsuit is part of that enforcement role. Arizona is seeking civil penalties, consumer restitution, and a court order preventing Temu from continuing the alleged practices.
