A group of 21 Republican state attorneys general, led by Montana Attorney General Austin Knudsen, has launched an investigation into Chinese e-commerce giant Temu and its parent company, PDD Holdings, Inc., over suspected forced labor ties and links to the Chinese Communist Party (CCP). The AGs are demanding answers about the company’s supply chain practices and how it handles consumer data.
The inquiry comes in the wake of troubling findings from the U.S. House Select Committee on the CCP, which revealed that Temu lacks policies to prevent goods from Xinjiang—where the CCP is accused of genocide— from being sold on its platform. The committee also noted that Temu conducts no audits to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA) and relies solely on suppliers in China to self-report any violations.
The state AGs expressed deep concern over these revelations, stating that Temu’s failure to implement proper compliance measures “virtually ensures” that products made with forced labor are reaching American consumers. The letter to Temu further inquires whether U.S. consumer data collected by the platform is being shared with or requested by the CCP.
Knudsen emphasized that his priority is protecting residents from companies that might compromise their sensitive information or engage in illegal activities. “Temu’s business practices and apparent ties to the Chinese Communist Party are deeply concerning,” he stated, adding that the company must ensure its practices comply with state laws.
The AGs warned that they would consider all available measures to protect consumers if Temu fails to address these concerns. They requested that the company provide a detailed response within 30 days, addressing questions about its supply chain, data security practices, and potential ties to the CCP.
As scrutiny intensifies, Temu faces mounting pressure to prove its compliance with U.S. laws and distance itself from practices associated with forced labor. The investigation underscores growing concerns among American officials about the influence of Chinese companies on U.S. markets and data privacy.
