Texas Attorney General Ken Paxton filed a lawsuit against Temu (PDD Holdings, Inc. and WhaleCo Inc.) for deceptive marketing practices and illegally harvesting Texans' personal data, which was then exposed to the Chinese Communist Party. The suit seeks monetary damages under the Texas Deceptive Trade Practices Act, with potential penalties of up to $10,000 per violation and higher for seniors. This is part of a broader effort to hold CCP-aligned companies accountable.
The lawsuit seeks monetary damages under the DTPA, with penalties of up to $10,000 per violation and up to $250,000 per violation for violations targeting consumers aged 65 or older.
In-house legal teams should review all vendor, customer, and data processing agreements, particularly those involving data collection, marketing services, and international data transfers. Key clauses to scrutinize include data processing and sharing provisions, consumer consent mechanisms (especially for sensitive data), marketing and advertising representations, data security and breach notification requirements, data retention schedules, and cross-border data transfer mechanisms. Given the allegations of illegal harvesting and exposure to foreign entities, contracts may need amendments to mandate explicit, granular consent for data collection; prohibit transfers to jurisdictions without adequate safeguards (e.g., China); require robust security audits; implement clear opt-out mechanisms; and ensure all marketing claims are verifiable and non-deceptive to comply with the Texas Deceptive Trade Practices Act.
Entity
PDD Holdings, Inc. and WhaleCo Inc.
Also known as: Temu
Industry
TechnologyOfficial 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
$1.0B
Texas Attorney General Ken Paxton secured a historic settlement with Meta Platforms, Inc. requiring Meta to pay over $1 billion and implement significant new safeguards to protect children online. The settlement includes stricter age-assurance measures, a daily two-hour limit for teen users, default disabling of notifications during school hours, hidden likes/reactions, and a nighttime access mode restricting features for children.
Texas Attorney General Ken Paxton launched an industry-wide investigation into companies marketing avocado oil products that may contain undisclosed seed oils. Civil Investigative Demands were issued to Primal Kitchen, Siete Foods, and Chosen Foods, with more companies expected to be investigated for potential violations of the Texas Deceptive Trade Practices Act.
Attorney General Ken Paxton secured settlements with WK Kellogg Co. and General Mills Inc. requiring the removal of synthetic dyes from cereals served in schools. The companies have already removed these dyes from K-12 cereals, with full removal from all products by the end of 2027.
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.