Arizona AG sues Temu over allegations of data collection, ripping off businesses
AG Kris Mayes accuses Temu of tracking users, monitoring other apps
Arizona's Attorney General, Kris Mayes, announced a lawsuit against Temu, accusing the Chinese-based company of collecting user's data without their knowledge and monitoring other apps on their phone. FOX 10's Steve Nielsen learns how its impacted one Arizona business.
PHOENIX - A very popular app this holiday season, famous for cheap prices, is being sued by the Arizona Attorney General.
What we know:
Attorney General Kris Mayes says the app Temu is collecting your data without your knowledge, but it might be even more than that. There are a lot of facets to this lawsuit, and it comes right at the busiest time of the year for shopping.
Local perspective:
This is the busy time of the year at Cactus Sports, especially for Cam Skattebo gear.
"It is off the charts hot," said Troy Scoma, who has owned the store since 1992.
Scoma has licenses to sell the gear and pays royalties to Arizona State University. Now, with Skattebo gear, he also has to pay fees to the NFL Players Association.
"Those contain almost a double royalty, so you're giving a royalty to ASU and the NFL," Scoma said.
That's why these sites really bother him: unlicensed gear selling for much cheaper online.
"How many more would we sell, and licensed stores sell, if that didn't exist? But it does," he said.
The Temu website in December 2025.
Big picture view:
On Tuesday, AG Mayes filed suit against Temu, a Chinese-owned online marketplace.
"We are trying to protect Arizona-based businesses that are being ripped off by Temu," Mayes said at a press conference.
She says they sell copyrighted gear without the rights, undercutting businesses like Cactus Sports.
Why you should care:
But a potentially larger concern is your data and privacy.
"Possibly the gravest violation of the Arizona Consumer Fraud Act that we have ever seen in Arizona," Mayes said.
Mayes says their investigation found the app on your phone tracks everywhere you go, and even more than that.
"The Temu app is designed to collect sensitive user data without the user's knowledge or consent, and it's purposely designed to evade detection of this type of data collection," Mayes said.
Dig deeper:
The Attorney General says the app monitors other apps on your phone, too, to collect even more data. And she worries about where that data goes.
"Temu is a Chinese company, mandated by Chinese law to cooperate with the Chinese Communist Government intelligence apparatus," Mayes said at the press conference.
The other side:
On December 2, FOX 10 reached out to Temu for their response, but did not get anything back from them. The following morning, they provided a statement:
"Temu denies the allegations in the lawsuit and will defend itself vigorously.
We help consumers and families access quality products at affordable prices. We work to keep costs down and maintain reliable supply so people can meet their needs without stretching their budgets.
We also create growth opportunities for businesses by offering a low-cost alternative to traditional gatekeepers. By providing another route to market, we return power and choice to local players, small and medium-sized businesses, and consumers.
We remain focused on delivering tangible savings to consumers and creating value for sellers."
What's next:
Mayes says deleting the app is not enough to stop the tracking. She said you may even consider resetting your phone.
The Source: This information was provided by Attorney General Kris Mayes and gathered by FOX 10's Steve Nielsen, who spoke with the owner of Cactus Sports on Dec. 2. Temu provided a statement on Dec. 3.