Temu agreed to pay Texas $3 million to settle the state’s lawsuit claiming it exposed Texans’ data to the Chinese government, without admitting wrongdoing. Texas is the first of several states suing Temu over its data practices to reach a settlement. Under the agreed judgment, Temu has to keep Texas shoppers’ data on U.S. servers owned by an American company and block people and businesses based in China from seeing it, with exceptions for customer consent and business needs. Temu also has to hire and pay an independent auditor every year, with each failed audit costing it up to $8 million. Separately, Temu agreed to test products annually for harmful chemicals, and when one fails, it must pull the listing, cut off the seller, and refund Texas buyers.
