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House Republicans Call for Investigation into Privacy, Business Practices of Temu

Members of Congress want the FBI and SEC to investigate Temu.
Photo credit: julien leiv - stock.adobe.com

As TikTok fights for its (U.S.) life in federal court, a group of House lawmakers are turning their attention to another Chinese-based app that is making inroads in America — Temu.

In a letter from Congressman Darin LaHood (R-Ill.) — also signed by every Republican member of the House Permanent Select Committee on Intelligence (HPSCI) — LaHood requests a briefing from the Federal Bureau of Investigation (FBI) and the Securities and Exchanges Commission (SEC) on national security and data privacy concerns surrounding Temu and its Chinese parent company Pinduoduo, which is listed on the NASDAQ.

“We are concerned about the protection of Americans’ data,” reads the letter. “Analogous to Congress’ action on TikTok, the relationship between the Chinese Communist Party (CCP), Chinese national security laws and Americans’ data must be understood. We have concerns that the CCP has undertaken yet another attempt to exploit the democracy, free market principles and the personal and economic data of the United States.”

The letter goes on to request that the FBI and SEC provide a briefing to the HPSCI on any intelligence and ongoing investigations into the privacy, labor and trade practices of Temu and Pinduoduo, as well examples of how the two agencies have handled similar concerns in the past.

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Discount shopping app Temu has experienced a meteoric rise in the U.S. since its 2022 debut, but its tenure in the U.S. has not been without controversy. The company has been continuously embroiled in legal battles with fellow China-direct competitor Shein. And earlier this month the U.S. Consumer Product Safety Commission (CPSC)  called for an investigation into the app for not complying with product safety standards, while President Biden proposed a new rule explicitly targeting Temu and Shein’s exploitation of the “de minimis” tax loophole. Additionally, in 2023, Pinduoduo was suspended from Google’s App Store after researchers discovered malware in the app.

The HPSCI’s request follows a similar line of congressional inquiry to that of TikTok and its Chinese parent company ByteDance, which eventually led to that app being banned in the U.S. unless it is sold to a U.S.-based entity. TikTok is currently appealing the ban in federal court.

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