Attorney General Paxton Secures First-of-Its-Kind Settlement with Temu to Protect Texans’ Data from the CCP and to Protect Consumers from Toxic Products from China
Attorney General Ken Paxton secured a landmark injunction requiring Temu to protect Texans’ sensitive data from exposure to the Chinese Communist Party (“CCP”). The settlement also requires the company to implement rigorous new product audits and safety standards to protect consumers from dangerous materials in products, including clothing and children’s items.
In February 2026, Attorney General Paxton sued PDD Holdings, Inc. and WhaleCo Inc., doing business as the global online shopping platform “Temu,” claiming that Temu unlawfully deceived consumers by exposing Texans’ sensitive personal data to the CCP. Temu had more than 82.4 million active users in the United States as of September 2023. Additionally, reports have claimed that products sold on the platform, including clothing, household items, children’s toys, and baby products, may contain harmful chemicals, including PFAS, that pose serious health risks to consumers.
Under this groundbreaking settlement, Temu will be required to fundamentally overhaul its data security and product safety practices. The company must store Texans’ personal data on American-owned and controlled servers located in the United States. They must restrict access to that data by individuals and entities based in China, subject to essential business functions. Failure to abide by various data security provisions would result in an $8,000,000 penalty each year a violation occurs. Temu will also pay $3 million to the State of Texas. Additionally, Temu must conduct annual independent product safety testing to identify products containing dangerous chemicals and materials. If a product is confirmed to contain harmful substances, Temu must remove the product, terminate the offending seller and its affiliated stores, notify affected Texas consumers, and issue full refunds.
“This is a historic victory for data privacy, consumer protection, and Texans who deserve to know that the products they purchase are safe,” said Attorney General Paxton. “Through this victory, we can now ensure that Temu cannot harvest Americans’ sensitive data and expose it to the Chinese Communist Party. Texans can now rest assured that Temu cannot sell products containing toxic and dangerous chemicals that threaten the health of the American people. We went after them and won more for Texans than anyone thought possible. Because that is what we do. We have never backed down in the fight to protect Texans.”
To read the settlement, click here.
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