Temu, PDD Holdings' e-commerce platform, settled with the state of Texas. The agreement resolves claims over data privacy and product safety practices. Texas Attorney General Ken Paxton announced the settlement. Temu will pay the state $3 million. The company will also implement stronger data security measures.
The settlement mandates Temu enhance protections for Texans' personal data. It also requires annual independent product safety evaluations. Texas filed a lawsuit against Temu in February 2026. The suit accused Temu of deceptive marketing and illegal data harvesting. It characterized the app as "spyware disguised as a shopping app." The agreement includes potential future penalties of $8 million per year for subsequent data security violations.