Texas Attorney General Ken Paxton filed a lawsuit against PDD Holdings, Inc. and WhaleCo Inc., doing business as Temu, for deceptive marketing and unlawful covert harvesting of Texans’ personal data that was exposed to the Chinese Communist Party. The suit alleges Temu functions as a 'trojan horse' e-commerce app that bypasses security protocols to create a backdoor into users’ private data, which is stored on servers in China. The lawsuit seeks monetary relief under the Texas Deceptive Trade Practices Act, including up to $10,000 per violation and up to $250,000 per violation targeting consumers aged 65 or older.
In-house legal teams should review all vendor agreements with e-commerce platforms, foreign-affiliated entities, and data processors to ensure express consent clauses for all data collection activities, strict prohibitions on unauthorized data sharing with foreign adversaries or entities, and mandatory security standards that prevent backdoor access to user data. Contracts should also include audit rights to verify data storage locations, compliance with state deceptive trade practices laws like the Texas DTPA, and requirements for explicit disclosure of all data harvesting practices. Additionally, teams should update data processing agreements to prohibit covert data collection and require immediate notification of any unauthorized data access or sharing.
Entity
PDD Holdings, Inc. and WhaleCo Inc. d/b/a Temu
Industry
RetailOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-files-fourth-anti-ccp-lawsuit-three-days-suing-temu-deceptive-marketing
Petition 12
https://www.texasattorneygeneral.gov/sites/default/files/images/press/Petition_12.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"filed suit against PDD Holdings, Inc. and WhaleCo Inc., doing business as the global online shopping platform “Temu”"
"February 19, 2026 | Press Release"
"Texas Attorney General Ken Paxton"
"Texas Attorney General Ken Paxton today filed suit against PDD Holdings, Inc. and WhaleCo Inc."
"relief under the Texas Deceptive Trade Practices Act (“DTPA”)"
"covertly harvesting Texans’ personal data"
Texas Attorney General Ken Paxton launched an investigation into the American Academy of Pediatrics (AAP) over concerns that the organization may be promoting and recommending childhood vaccines for financial gain. The AAP has been issued a Civil Investigative Demand to determine the basis of its vaccine recommendations and whether they are influenced by financial incentives from pharmaceutical donors.
Texas Attorney General Ken Paxton announced an investigation into major food manufacturers, including Frito Lay, Flora Food Group, and ACH Foods, over misleading 'heart healthy' labeling. The investigation will examine whether their advertising practices violate the Texas Deceptive Trade Practices Act by misrepresenting the health value of their products. Civil Investigative Demands have been issued to these companies.
Texas Attorney General Ken Paxton opened an investigation into Lone Star Pups, LLC for misleading consumers about the origin and veterinary care of puppies sold online. The company allegedly misrepresents breeder certifications and a '10 Year Health Guarantee' with restrictive fine print. The investigation focuses on potential violations of the Texas Deceptive Trade Practices Act.
Texas Attorney General Ken Paxton announced industry-wide investigations into feminine care and cosmetic product brands, including Tampax, Kotex, L., and LOLA, over potential deceptive trade practices related to undisclosed toxic chemicals and heavy metals in their products. The investigations focus on whether consumers were misled about product safety and ingredient composition under the Texas Deceptive Trade Practices Act.
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.