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Texas Attorney General Sues Temu for Deceptive Marketing and Unlawful Data Harvesting Exposing Data to CCP

PDD Holdings, Inc. and WhaleCo Inc. d/b/a TemuFebruary 19, 2026Texas Attorney General

Summary

Texas Attorney General Ken Paxton filed a lawsuit against PDD Holdings, Inc. and WhaleCo Inc., doing business as Temu, for deceptive marketing and unlawful covert harvesting of Texans’ personal data that was exposed to the Chinese Communist Party. The suit alleges Temu functions as a 'trojan horse' e-commerce app that bypasses security protocols to create a backdoor into users’ private data, which is stored on servers in China. The lawsuit seeks monetary relief under the Texas Deceptive Trade Practices Act, including up to $10,000 per violation and up to $250,000 per violation targeting consumers aged 65 or older.

Contract Impact

In-house legal teams should review all vendor agreements with e-commerce platforms, foreign-affiliated entities, and data processors to ensure express consent clauses for all data collection activities, strict prohibitions on unauthorized data sharing with foreign adversaries or entities, and mandatory security standards that prevent backdoor access to user data. Contracts should also include audit rights to verify data storage locations, compliance with state deceptive trade practices laws like the Texas DTPA, and requirements for explicit disclosure of all data harvesting practices. Additionally, teams should update data processing agreements to prohibit covert data collection and require immediate notification of any unauthorized data access or sharing.

Contract Search Terms

data harvesting consentunauthorized data sharingforeign data storagesecurity backdoorCCP data exposureTexas Deceptive Trade Practices Actdata security protocols

Laws Cited

Texas Deceptive Trade Practices Act (DTPA)

Violation Types

Entity Details

Entity

PDD Holdings, Inc. and WhaleCo Inc. d/b/a Temu

Industry

Retail

Official Sources

Source Evidence

Entity Name
"filed suit against PDD Holdings, Inc. and WhaleCo Inc., doing business as the global online shopping platform “Temu”"
Event Date
"February 19, 2026 | Press Release"
Jurisdiction
"Texas Attorney General Ken Paxton"
Event Type
"Texas Attorney General Ken Paxton today filed suit against PDD Holdings, Inc. and WhaleCo Inc."
Laws Cited
"relief under the Texas Deceptive Trade Practices Act (“DTPA”)"
Violation Types
"covertly harvesting Texans’ personal data"

Related Enforcement Actions

TX

PDD Holdings, Inc. and WhaleCo Inc. (doing business as Temu)

$3.0M

Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.

TX

Albertsons Companies, Inc.

$773.0M

Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.

TX

Gerber Products Company and Nestlé USA, Inc.

Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.

TX

Rubinsky Roofing LLC

$1.5M

The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.

TX

UnitedHealth Group, Inc.

The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.

TX

Tris Pharmaceuticals

$7.5M

Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.