US Congress Calls for Investigation into Temu’s Data Practices

Republicans in the U.S. Congress have formally requested the Federal Bureau of Investigation (FBI) and the Securities and Exchange Commission (SEC) to investigate the operations of the Chinese marketplace Temu and its handling of American citizens’ data. This move was prompted by concerns over data protection, similar to those previously raised regarding TikTok.

The House Intelligence Committee has expressed apprehensions about the company’s potential ties to the Chinese Communist Party (CCP). Lawmakers believe that Temu’s compliance with China’s national security laws may pose a threat to the privacy of American data. In a letter sent to the SEC and FBI, it was emphasized that, much like the case with TikTok, it is essential to understand how Chinese companies exploit the democratic principles of the U.S. free market for their own advantage.

Temu entered the U.S. market in 2022 and swiftly gained popularity through advertisements during the Super Bowl in 2023 and 2024. However, from the outset, the company has faced allegations of using forced labor, promoting “fast fashion,” and engaging in unfair pricing practices. Moreover, in 2023, Google temporarily removed the app of Temu’s parent company, Pinduoduo, from its store after discovering malware that, according to experts, exploited vulnerabilities to access users’ data.

In February, several U.S. citizens filed lawsuits against Temu, accusing the platform of privacy violations. The Republicans’ letter to the SEC and FBI also mentioned reports of connections between the leadership of Pinduoduo and Temu with the CCP, as well as media publications concerning potential vulnerabilities in the company’s software products.

Members of Congress are demanding answers about whether investigations into Temu have been conducted, and how the SEC and FBI, in general, address matters related to national security. These inquiries form part of a broader investigation into China’s influence on U.S. markets and the potential threats posed to the country.

Earlier in April, President Joe Biden signed a law requiring either the sale of TikTok or a complete ban on the app by January of next year, due to concerns over national security.