Twenty-one Republican state attorneys general have issued a stern warning to Chinese online retailer Temu and its parent company, PDD Holdings, Inc., as they seek answers about the company’s potential involvement in forced labor and its links to the Chinese Communist Party (CCP). Led by Montana Attorney General Austin Knudsen, the coalition is demanding transparency from the e-commerce giant regarding its supply chain and data practices.
The letter from the AGs comes after congressional investigators revealed that Temu admitted it does not have a policy prohibiting goods from Xinjiang—a region where the CCP is accused of carrying out genocide—from being sold on its platform. The investigators also found that Temu relies solely on China-based suppliers to voluntarily disclose any labor violations, with no audits or compliance checks in place.
The AGs expressed alarm over the lack of safeguards, stating that such weak oversight “virtually ensures” that some products sold on Temu’s platform are made with forced labor. The letter also raises concerns about whether U.S. consumer data collected by Temu is being shared with the CCP or subject to government requests.
Knudsen emphasized the need to hold businesses accountable if they engage in practices that harm consumers or violate state laws. “As attorney general, it’s my job to protect Montanans from bad actors who may be coming after their sensitive consumer data,” Knudsen said, adding that the situation warrants immediate attention.
The AGs have requested detailed information on Temu’s supply chain practices, data security protocols, and any potential connections to the CCP. They have given the company 30 days to respond, warning that failure to address these concerns could lead to further legal action.
The investigation highlights the increasing scrutiny Chinese companies face in the U.S. as officials look to protect consumers from potential threats posed by foreign entities with ties to authoritarian regimes. Temu’s response will be closely monitored as the inquiry unfolds.
