Arkansas Attorney General Tim Griffin has issued a stark warning about the Temu marketplace app, alleging it operates as a “data theft business” rather than a legitimate online marketplace like Amazon or Walmart. Griffin claims Temu uses malware and spyware to infiltrate users’ devices and gather extensive personal data, going beyond normal business practices. The app, operated by a Chinese company with ties to former communist officials, faces a lawsuit seeking to halt its data collection activities in Arkansas. The controversy has sparked concerns about privacy and security, drawing attention to potential risks associated with using the app amid accusations of illegal data sales and intrusive surveillance tactics.

Jack Phillips from The Epoch Times reported that on July 2Arkansas’s top prosecutor cautioned Americans to be weary of using the Temu marketplace app, which is effectively a “data theft business.”

“The threat from China is not new, and it is real,” Arkansas Attorney General Tim Griffin told Fox Business on July 2, one week after his office launched a case against the corporation. “Temu is not an online marketplace like Amazon or Walmart. It’s a data theft business that sells goods as a means to an end.”

He stated that “it is common for an online marketplace like Amazon or Walmart to collect certain consumer data as part of the normal course of business.” I think we all know that that’s not what’s going on here.”

Instead, the corporation uses malware and spyware to “get into your phone, your device, and collect your data,” Mr. Griffin told the publication.

“Not just traditional consumer data, but using malware, spyware to have complete access to your information. And [taking it] one step further, their code is written in such a way to evade detection,” he said.

Temu is run by Pinduoduo Inc., a Shanghai-based corporation with “former Chinese communist officials” among its employees, according to Mr. Griffin.

The complaint, filed against the firm’s parent business, seeks both a jury trial and a permanent injunction against Temu’s data harvesting activities. It also demands a $10,000 penalty for each breach of the Arkansas’ Deceptive Practices Act.

The suit primarily cites research from Grizzly Research, which analyzes publicly traded firms, and alleges that Temu can “purposely… gain unrestricted access to a user’s phone operating system, including, but not limited to, a user’s camera, specific location, contacts, text messages, documents, and other applications.”

In its study, Grizzly Research stated that it believes Temu of “already, or intends to, illegally sell stolen data from Western country customers to sustain a business model that is otherwise doomed for failure.”

“Temu is estimated to lose $30 per order.” Its ad spending and shipping prices (1 to 2 weeks from China, expedited to the United States) are outrageous, according to the report.

“One is left wondering how this business could ever be profitable. Temu is a notoriously bad actor in its industry. We see rampant user manipulation, chain-letter-like affinity scams to drive signups, and overall, the most aggressive and questionable techniques to manipulate large numbers of people to install the app.”

A Temu representative told The Epoch Times on Tuesday evening that it was “disappointed” and that the Arkansas complaint does not reference “any independent fact-finding.”

“The allegations in the lawsuit are based on misinformation circulated online, primarily from a short-seller, and are totally unfounded. “We categorically deny the allegations and will vigorously defend ourselves,” the firm said. “We understand that as a new company with an innovative supply chain model, some may misunderstand us at first glance and not welcome us.”

The spokesperson continued, “We are committed to the long-term and believe that scrutiny will ultimately benefit our development. We are confident that our actions and contributions to the community will speak for themselves over time.”

Recently, GreatGameIndia reported on the FBI’s annual Internet Crime Report, which disclosed staggering losses of $12.5 billion to cybercrime in 2023. This marks a $2 billion increase from the previous year, with investment fraud and compromised email accounts identified as major contributors.