New Report Suggests TEMU Illegally Extracting American User Data for CCP

A new report from the Center for Strategic and International Studies (CSIS) claims Chinese retail platform Temu is engaging in illegal business behavior and potentially feeding China with American users’ data.

The CSIS report alleges Temu is liable to China’s National Security law, which obligates Chinese companies to reveal all data requested by the CCP. 

According to the report, Temu’s potential obligation to overturn its data to the CCP “gives the CCP potential access to sensitive information on millions of American users.”

CSIS also flagged concerns regarding Temu’s circumvention of US trade laws to evade taxes in order to maintain artificially low prices. 

Moreover, CSIS claims Temu’s failure to demonstrate compliance with Uyghur Forced Labor Prevention Act (UFLPA) raises  “concerns that some of its products may be linked to forced labor practices in China.”

The UFLPA was passed following reports Chinese firms were employing Uyghur slave labor to manufacture cheap goods. 

Temu has been facing intense scrutiny from US lawmakers for alleged ties to the Chinese Communist Party (CCP)

Last August, Senator Rick Scott (R-FL) sent President Biden’s administration a letter requesting Temu be investigated over product safety, labor practices, unfair competition, data privacy, and counterfeit goods concerns.

Temu’s Chinese ownership, said Scott, is grounds for inquiring upon how Temu manipulates American users’ data and if it is being delivered to the Chinese Communist Party (CCP).

Furthermore, Scott justified his investigation request to ensure Temu products are not produced using forced labor, as some Chinese companies have been previously accused of.

The US Consumer Product Commission (CSPC) subsequently published a statement recommending a federal investigation into TEMU. 

CSPC released a statement outlining the need to investigate Temu’s US operations, foreshadowing a full investigation by the CSPC.

The statement alleges Temu’s operations “raise specific concerns” regarding product safety and supply chain dynamics. 

However, since the CSPC statement, no investigatory actions or procedures have been taken against Temu.