A coalition of 21 Republican state attorneys general has raised serious concerns about the Chinese online retailer Temu and its parent company, PDD Holdings, Inc., regarding potential ties to forced labor and the Chinese Communist Party (CCP). Led by Montana Attorney General Austin Knudsen, the group issued a letter demanding information on the company’s business practices, particularly its compliance with laws aimed at preventing forced labor.
The letter questions whether Temu is “illegally selling products made by forced labor in an area of China in which the CCP is committing genocide.” Specifically, the AGs are concerned about goods originating from the Xinjiang region, where the Chinese government is accused of human rights abuses against Uyghur Muslims. Congressional investigators previously revealed that Temu does not have adequate measures in place to prevent products from this region from being sold on its platform.
The state AGs highlighted findings from the U.S. House Select Committee on the CCP, which discovered that Temu admitted it does not comply with the Uyghur Forced Labor Prevention Act (UFLPA). The platform also conducts no audits or compliance checks to ensure that suppliers are not engaging in forced labor, relying instead on voluntary disclosures from China-based suppliers.
The letter also raises concerns that Temu’s ties to the CCP may extend to consumer data collection. The AGs requested clarification on whether U.S. consumer data is being sold or requested by the Chinese government. They asked Temu to respond within 30 days, warning that they would take further action if necessary to protect their citizens.
State AGs from Alabama, Alaska, Florida, and Georgia, among others, joined Knudsen in signing the letter. “Temu’s business practices and apparent ties to the Chinese Communist Party are deeply concerning,” Knudsen said, stressing the need to protect citizens from potential data breaches and illegal practices.
The investigation into Temu is part of a broader effort by U.S. officials to scrutinize Chinese companies for potential risks to American consumers and national security. The outcome of this inquiry could have significant implications for the company’s operations in the United States.