Republican Lawmakers Urge SEC, FBI to Probe Temu’s Data Privacy Concerns

Regulators and lawmakers continue to scrutinize Temu for the risks it poses to the U.S. consumer market.

Congressman Darin LaHood and several Republican members of the House Permanent Select Committee on Intelligence (HPSCI) penned a letter to U.S Securities and Exchange Commission (SEC) Chair Gary Gensler and FBI Director Christopher Wray.

The letter seeks a briefing concerning Temu, an affordable e-commerce platform, due to worries about its associations with the Chinese Communist Party (CCP).

As the letter suggests, Temu’s parent company, PDD Holdings, is listed on the Nasdaq and thus subject to SEC regulation.

The lawmakers cite issues including potential trade violations, forced labor, and national security threats tied to Temu and PDD Holdings.

“We are concerned about the protection of Americans’ data,” the lawmakers wrote, drawing parallels to Congress’s previous actions on TikTok. They stressed the need to understand the relationship between Chinese national security laws, the CCP, and how American consumer data might be exploited.

While PDD Holdings is now headquartered in Dublin, Ireland, it was founded in Shanghai, China, and only changed its legal domicile in 2023. Temu’s headquarters are listed in Boston, though many of its sellers are Chinese manufacturers or businesses.

This has led to fears that sensitive data from U.S consumers could be exposed to foreign adversaries.

LaHood shared these concerns in an interview with Fox News Digital, stating that Temu’s ties to China “have elevated the risk to American consumers, with the potential for private and sensitive data to be transferred to foreign adversaries.”

He urged federal partners at the FBI and SEC to brief Congress for proper oversight of these risks.

The letter was co-signed by several prominent Republicans, including Representatives Mike Turner (R-Ohio), Elise Stefanik (R-N.Y.), Brian Fitzpatrick (R-Penn.), French Hill (R-Ark), Michael Waltz (R-Fla.), Scott Perry (R-Penn.), Rick Crawford (R-Ark.), Trent Kelly (R-Miss.), Austin Scott (R-Ga.), Dan Crenshaw (R-Tex.), Mike Garcia (R-Calif), and Ronny Jackson (R-Tex.).

No Democrats signed the letter, although some have voiced concerns about Temu and its competitor, Shein.

The lawmakers have called for a joint briefing by the FBI and SEC to address various issues. They specifically asked the FBI to disclose whether it has shared intelligence on Temu’s labor practices, data management, and links to the CPP with SEC.

They also requested the agencies to identify any legal obstacles to sharing information between the intelligence community and the SEC and clarify whether the SEC has requested intelligence on Temu and PDD Holdings from the FBI.

A spokesperson for the SEC indicated that Gensler would address Congress directly but did not provide any additional comments. This isn’t the first time Temu has faced political criticism.

In late August, the attorneys general of 21 states sent a letter to Chen Lei, CEO of PDD Holdings, seeking answers about consumer data practices, forced labor, and the company’s potential connections to the CPP.

Arkansas Attorney, General Tim Griffin filed a lawsuit against Temu over privacy in June over privacy concerns, and other politicians, such as Senator Marco Rubio, have been vocal critics of Temu and Shein.

The Biden-Harris administration has also proposed new regulations targeting companies exploiting China-direct shipping to U.S. consumers.

Sourcing Journal contacted Temu, Congressman LaHood’s office, and the FBI for comments, but received no immediate responses.