(RTTNews) - Temu, an online marketplace launched by the Chinese e-commerce company PDD Holdings (PDD), has received the attention of lawmakers in Congress after airing its Super Bowl ads.
The company received the scrutiny over its link to products produced with forced labor in Xinjiang and its data-sharing policies. Additionally, the company faces potential tax and regulatory challenges.
A group of Republican lawmakers called on CBS to drop Temu's ad before the Super Bowl, alleging the company had a "pattern of noncompliance toward illicit products entering the United States market."
Despite the backlash, Temu ran several ads during the Super Bowl that encouraged viewers to download its app so they could "shop like a billionaire." Along with the ads, Temu launched $15 million worth of coupons and giveaways tied to the game. However, each of the Super Bowl ads cost the company roughly $7 million which is the going rate for 30-second ads during the event.
Members of Congress took to social media to call out Temu's data practices and links to forced labor in China, advising American consumers against downloading the app.
Sen. Tom Cotton, R-Ark., wrote on X, formerly Twitter, that Temu and any other Chinese tech company must allow the Communist Party unfettered access to its data, which should be a non-starter for doing business in the United States.
Rep. Kat Cammack, R-Fla., also wrote on X that the Super Bowl featuring a Temu commercial should "be a wake-up call to all Americans," adding that Temu was being sued for stealing customer financial info and having spyware embedded in their app. All that data is owned and controlled by the CCP, so she cautioned against downloading the app.
Temu is also currently dealing with class action lawsuits in Illinois and New York. These lawsuits claim that the company deceitfully gathered customer data using permissions that enabled access to Bluetooth and Wi-Fi network information, as well as biometric data and that it did not sufficiently protect this data.
In a statement responding to the latest developments, a Temu spokesperson said, "Before setting up their stores and listing products on Temu, every seller has to sign an agreement. This document stands as a pledge to maintain lawful and compliant business operations, and adhere strictly to the legal standards and regulations of their specific markets. The Third Party Code of Conduct mandates that anyone doing business with Temu must strictly comply with all regulatory standards and compliance requirements."
"The use of forced, penal, or child labor is strictly prohibited. Employment by all our merchants and suppliers must be strictly voluntary," the spokesperson continued. "They shall respect the freedom of association and workers' rights to collectively bargain. Temu's merchants, suppliers, and other third parties must pay their employees and contractors on time and must comply with all applicable local wage and hours laws."
They added, "We explicitly reserve the right to terminate any business relationship if a third party violates this Code of Conduct or the law. Though Temu is a young company with just a year under our belt, we've always prioritized following the rules and regulations. Our current standards and practices are no different from those of major e-commerce platforms, such as Amazon, eBay, and Etsy."
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