Temu Under Fire? The Lawsuits That Could Change E-Commerce Forever!

 

Temu—the viral shopping app that turned bargain hunters into billionaires overnight (well, almost)—is facing major heat in the United States and beyond. While millions scroll for $1 lashes, $3 electronics, and those random kitchen gadgets we never knew we needed, attorneys general, fashion brands, and data privacy experts are sounding the alarm.

The big question: Is Temu just another low-cost online marketplace… or a data-harvesting machine disguised as one? As the lawsuits roll in, the answers are getting a lot more complicated.

What Is Temu?

Launched in the U.S. in 2022 by PDD Holdings (the same parent company behind Chinese giant Pinduoduo), Temu quickly became a global phenomenon. With its ultra-cheap prices and “Shop Like a Billionaire” branding, the app skyrocketed to the top of Apple and Android download charts.

But from the start, critics raised concerns about how Temu could afford to sell products so cheaply. Now, lawsuits suggest the answer might involve more than just bulk buying or offshore warehouses.

The Legal Firestorm: Temu vs. America

Temu is now the target of multiple lawsuits filed by U.S. states and brands—and these aren’t your run-of-the-mill consumer complaints. We’re talking about allegations of:

• Data theft

• Spyware installation

• Child privacy violations

• Counterfeit product sales

• Deceptive marketing

• Ties to forced labor

Let’s dig into the biggest legal battles Temu is facing right now.

Kentucky: “This Is a Data-Theft Business”

On July 17, 2025, Kentucky’s Attorney General Russell Coleman filed a bombshell lawsuit against Temu. The complaint alleges that Temu:

• Collects personal data without consent

• Accesses users’ microphones, cameras, and even location in the background

• Offers counterfeit versions of Kentucky-based brands like Buffalo Trace and Churchill Downs

• May have indirect links to Chinese government surveillance efforts

• Is connected to supply chains involving forced labor, including from ethnic minority populations in China

In Coleman’s words:

“Temu is not just another shopping app—it’s a data-theft business masquerading as an online retailer.”

This is one of the most aggressive accusations against a Chinese app since TikTok landed in hot water with the U.S. Congress.

Temu clapped back fast, releasing a statement calling the lawsuit:

“A politically motivated mischaracterization based on misinformation.”

Nebraska: Malware and Minor Exploitation?

In June 2025, Nebraska Attorney General Mike Hilgers followed with a separate lawsuit. This one goes even further, alleging that the Temu app:

• Installs malware or spyware to mine user data

• Exploits children and teens with deceptive marketing

• Uses bait-and-switch pricing to manipulate users into clicking on seemingly great deals

Hilgers didn’t mince words:

“Temu is siphoning off Nebraskans’ private data and deceiving consumers at every turn.”

The lawsuit also notes that Temu’s app permissions request access to almost every function on a user’s phone—even when it’s not in use.

That’s terrifying when you think about how many Americans now use Temu as casually as Amazon or Walmart.

The Fashion Face-Off: Brandy Melville and Shein Fight Back

Temu isn’t just beefing with governments—it’s got serious drama with other fashion and retail powerhouses.

Brandy Melville vs. Temu (Federal Lawsuit)

In July 2025, trendy teen brand Brandy Melville filed a federal lawsuit accusing Temu of:

• Selling knockoff apparel

• Using Brandy’s trademarked slogans and designs

• Profiting off fake Brandy merch

Examples of counterfeited phrases include:

• “Brandy ♥ Melville”

• “RADIO SILENCE”

• “CHILL SINCE”

The lawsuit demands:

• An immediate stop to all sales of fake goods

• Destruction of infringing inventory

• A full accounting of profits made off Brandy designs

Legal experts say this lawsuit could set a precedent for how U.S. brands protect their IP from international e-commerce platforms.

Shein vs. Temu: Rival Fast-Fashion Giants Go to Court

Meanwhile, Shein and Temu are locked in a legal feud that’s playing out across two continents.

In the United Kingdom, Shein sued Temu in 2024 for copyright infringement and stealing product images. But Temu clapped back with a countersuit, accusing Shein of:

• Forcing exclusive supplier contracts

• Violating competition laws

Temu claims that Shein is trying to create a monopoly on ultra-fast fashion by locking up manufacturers. A full-blown trial is expected in late 2026, and fashion insiders are calling it the “trial of the decade”.

In the United States, Shein also sued Temu multiple times in 2022 and 2023 for:

• IP theft

• Supplier intimidation

• Unfair competition practices

Let’s be clear: This isn’t just a fashion fight. It’s a global battle over who gets to dominate the future of online shopping.

Bigger Picture: Is Temu the New TikTok?

Let’s connect the dots.

Temu, like TikTok, is a Chinese-owned app that exploded in popularity in the U.S. during a time of growing political tension between the two countries. And now, both are facing allegations of:

• Data misuse

• Censorship or surveillance concerns

• Influence over American consumers

Just like TikTok was forced to host U.S. data on American servers via Oracle, Temu has now promised to do the same. But privacy watchdogs warn that simply moving data to the U.S. doesn’t solve the real problem—which is who ultimately controls it.

Summary Table: Major Lawsuits Facing Temu

Who’s Suing	When	Why	Temu’s Response
Kentucky AG	July 2025	Data theft, forced labor ties, counterfeits	Denies all claims
Nebraska AG	June 2025	Malware, child exploitation, deceptive pricing	No formal response yet
Brandy Melville (Federal)	July 2025	Trademark/copyright infringement	Awaiting court date
Shein (U.K.)	2024–2026	Copyright theft, supplier monopoly practices	Filed counterclaim
Shein (U.S.)	2022–2024	Antitrust violations, IP theft	In litigation

Should You Still Be Using Temu?

That’s the million-dollar question.

Sure, the prices are addictive. But as lawsuits and government scrutiny ramp up, users are now being asked to weigh the true cost of convenience. Is your data safe? Are those deals even real? Could your $2 earrings be funding human rights violations?

Temu has said it’s “committed to full legal compliance”, but so far, it’s losing trust in the court of public opinion. As of now, Temu is still available to download, and many Americans continue to use it daily. But with lawsuits stacking up like unshipped packages, the app’s future is far from guaranteed.

Would you delete Temu if you knew your personal data was at risk? Or are you still tempted by the price tags?

Drop your thoughts in the comments and let’s talk about how we shop—and who we’re trusting with our wallets and our phones.

SOURCES

• Kentucky.gov – AG Coleman’s Lawsuit

• WBKO: Temu Responds to Lawsuit

• WSJ: Temu vs. the States

• Reuters: Shein and Temu Trial 2026

• The Fashion Law: Brandy Melville Lawsuit