The e-commerce company behind several Super Bowl ads is facing intense backlash following its purchase of spots.
The controversial shopping app Temu is under Congressional investigation for the alleged use of forced labor, and has been accused of spying on its customers.
The app was was the most-downloaded free iPhone app in the U.S. last year, according to available data.
Days before the Super Bowl, several federal lawmakers asked CBS, the network which aired the game, not to run Temu’s ads.
Lawmakers say they are investigating the company’s potential use of slave labor, and alleged ties to China's communist party.
Launched in 2022, Temu has already gathered more than 1,700 customer complaints on the Better Business Bureau's website. Most of those centered around “what customers call” the low quality of the merchandise, refunds issues or shipping delays.
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Concerns over privacy are also now central to two class action lawsuits.
According to a class action lawsuit filed in Illinois last November, the app “‘bypasses’ phone security systems to read a user’s private messages, make changes to the phone’s settings and track notifications.’
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Another class action lawsuit filed in New York last fall accuses the company of allowing consumers “financial information to be compromised”, which resulted in their credit card and bank information being sold or leaked after using the app.
In response to one of those class action lawsuits, Temu said in court filings that all its users must accept its terms of service when creating an account. The company says those terms bars users from pursuing a class action suit.
Temu also said allegations of forced labor are “completely ungrounded.”
The company issued a full statement to NBC Chicago on Monday evening:
"We categorically deny the allegations and intend to vigorously defend ourselves against these meritless lawsuits. The complaints parrot a report put out by a short-seller, which has an obvious incentive to try to drive down Temu's stock price through misinformation. The report even includes a disclaimer that its contents are 'not statements of fact.'
The truth is that safeguarding privacy is one of Temu's core values. Our privacy practices are in line with industry standards and are transparently disclosed in our Privacy Policy. Temu also has a "permissions" section in the Temu app and website that clearly explains the device features that Temu does and does not access.
We do not sell customer data to third parties."
