'Forced labor': State AGs probe Chinese company Temu over 'disturbing' business practices

FIRST ON FOX: A group of Republican state attorneys general is demanding answers from the Chinese e-commerce company Temu, alleging "disturbing" collection of U.S. consumer data and illegal forced labor practices. 

Montana Attorney General Austin Knudsen, along with 19 of his GOP colleagues, sent a letter to Temu on Thursday seeking information on the company's business practices and potential ties with the Chinese Communist Party (CCP). 

"Congressional investigators believe that your company, Temu (which is owned by PDD Holdings), is illegally selling products made by forced labor in an area of China in which the CCP is committing genocide. And PDD Holdings is credibly accused by members of Congress as being linked to the CCP," the letter states.

"Montana has additional concerns about Temu’s and PDD Holding’s data collection practices. Like other companies subject to CCP control, Montana believes that Temu is obligated to collect and send Montana consumer data to the CPP on demand," the letter said. 

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"The Montana Consumer Data Privacy Act goes into effect on October 1, 2024, and given the CCP’s demonstrated history of using CCP-affiliated companies to target and track U.S. consumers, Montana remains concerned that Temu will flout Montana law," it continued.

The letter makes note of the U.S. House Select Committee on the CCP last year revealing "disturbing information about Temu’s failure to comply with American laws prohibiting the use of forced labor by Uyghurs."

"Temu admitted to the Select Committee that ‘it does not have a policy in place to prohibit the sale of goods from Xinjiang — the location of the CCP’s ongoing genocide against the Uyghurs — on [your] platform.’ Instead, Temu claimed it is not subject to the Uyghur Forced Labor Prevention Act (UFLPA),'" the letter noted.

The AGs claimed that the select committee found, "Temu conducts no audits and reports no compliance system to affirmatively examine and ensure compliance with the UFLPA," relying instead on China-based suppliers to voluntarily report violations of "boilerplate terms and conditions that prohibit the use of forced labor." 

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"Based on the evidence collected, the Select Committee concluded that Temu’s poor compliance system virtually ensures ‘that shipments from Temu containing products made with forced labor are entering the United States on a regular basis, in violation of the UFLPA,’" the AGs state. 

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The letter goes on to say that Temu's ongoing conduct raises serious concerns about its compliance with state consumer protection laws. 

"These concerns extend to products sold exclusively on Temu’s website that fail to adequately warn consumers of dangers associated with their products and fail to notify consumers the products are subject to safety recalls," the AGs write.

The AGs warn that if Temu's "harmful" business practices are left "uncorrected," they "will consider all available measures to protect our citizens." 

The top state law enforcement officials gave Temu 30 days to hand over any information related to retention of user data, information the company has given to the CCP, and other details related to their business practices. 

Temu did not immediately respond to Fox News Digital's request for comment. 

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"Temu's business practices and apparent ties to the Chinese Communist Party are deeply concerning," Knudsen said in a statement to Fox News Digital. 

"As attorney general, it's my job to protect Montanans from bad actors who may be coming after their sensitive consumer data and hold anyone who has violated our consumer protection laws accountable. I look forward to hearing from the company to ensure their business practices are in line with Montana law and data is not being shared with the CCP," he said.