Congress Probes Temu and Shein Amid Data Breach Allegations and Legal Disputes
Both Temu and Shein, popular e-commerce platforms, are currently under congressional scrutiny for their business practices. The investigation follows several legal disputes and customer complaints.
In December 2022, Shein sued Temu, accusing it of mimicking Shein's social media presence and deceiving users into downloading the Temu app. Temu retaliated in July, suing Shein for allegedly pressuring suppliers not to work with Temu. Meanwhile, Temu faces serious allegations of wiretapping and data security breaches. Eric Hu, the lead plaintiff in a class action lawsuit, claims Temu collected his data from third-party websites without his knowledge or consent. The lawsuit alleges Temu failed to disclose the extent of a data breach and notify affected customers promptly. The Better Business Bureau has received over 900 complaints of unauthorized bank withdrawals following Temu purchases. Jeff Gluck, the lawyer representing the plaintiffs, previously filed complaints on behalf of Twenty One Pilots and the estate of rapper MF Doom in similar cases.
Temu and Shein's legal disputes and customer complaints have led to a congressional investigation into their business practices. Temu, in particular, faces severe allegations of data privacy breaches and unauthorized transactions. The outcome of these investigations and lawsuits will significantly impact the e-commerce landscape.
