Chinese-owned discount shopping platform Temu faces a mounting wave of class action lawsuits claiming the app secretly harvests excessive user data and poses security risks. Plaintiffs from multiple U.S. states allege that Temu intentionally loads its app with malware and spyware, giving the company potential access to "literally everything" on their phones.

"The complaints parrot a report put out by a short-seller, calling itself Grizzly Research, which has an obvious incentive to try to drive down Temu's stock price through misinformation," a Temu spokesperson told WHIO-7, denying the allegations.

Temu's controversial data practices came under scrutiny following a report from Grizzly Research, prompting legal action. The lawsuits claim Temu deceptively collects extensive information that goes beyond the needs of an online shopping platform.

Security experts and lawsuits express concerns that Temu could use this collected data for purposes beyond improving the user experience, potentially including intrusive profiling or targeted advertising.

One lawsuit directly accuses Temu of violating the Computer Fraud and Abuse Act, the Electronic Communications Privacy Act of 1986, and Massachusetts privacy laws. Law firm Hagens Berman, representing the plaintiffs, stated their intent to hold Temu accountable for alleged data breaches and security failings.

Temu's eye-catching low prices have fueled its rapid growth. However, critics argue that these savings might come at the cost of user privacy. The lawsuits cast doubt on the company's commitment to user data protection and raise questions about potential privacy trade-offs.

"The truth is that safeguarding privacy is one of Temu’s core values,” a Temu spokesperson maintained.

The outcome of the lawsuits could have significant implications for Temu, the broader discount e-commerce sector, and consumer privacy rights. If plaintiffs succeed, Temu may face costly penalties and be forced to change its data collection practices. The case also highlights the growing scrutiny surrounding tech companies' data handling, especially those with foreign ownership.