Temu holding company hit with class action lawsuit

Dive Brief:

• Temu holding company Whaleco Inc. is facing a class action lawsuit that claims it sent text messages to phone numbers listed on the U.S. national do-not-call registry, according to court documents.
• The lead plaintiff in the case received two text messages that marketed Temu in April, despite being listed with the do-not-call registry since 2022, according to the complaint.
• Attorneys for the plaintiffs are seeking a jury trial along with monetary damages.

Dive Insight:

The case, filed last week in the U.S. District Court for the District of Massachusetts, claims violation of the Telephone Consumer Protection Act, which prohibits companies from telemarketing to people who register with the national do-not-call list. The registration must be honored indefinitely until canceled by the individual or removed by the database administrator, per court documents.

“Temu takes consumer protection seriously,” a Temu spokesperson said in an email to Fashion Dive. “We believe the lawsuit is without merit and intend to defend our interests vigorously.”

This is the third class action lawsuit filed against the fast fashion giant.

The first class action lawsuit, filed in September 2023, claimed that Temu failed to secure customers’ personal and financial data. The second, filed in November, claimed Temu misled consumers about the scope and reach of its data access and collection and intentionally loaded dangerous malware and spyware onto users’ devices. 

Both cases are ongoing, and Temu previously said it strongly opposed the allegations in the November complaint.

Last month, Arkansas Attorney General Tim Griffin filed a consumer protection lawsuit against Temu. That lawsuit contained claims similar to those in the 2023 class action lawsuits. 

In addition to these lawsuits, Temu has until July 12 to detail its compliance with the EU’s Digital Services Act. The European Commission requested information from Temu and its fast fashion rival Shein following a consumer report that alleged Temu violated the DSA.

Despite legal and regulatory challenges, Temu has remained popular since its launch in the U.S. in 2022. In a recent survey, 68% of U.S. consumers said they shopped on Temu, although only 6% said they trusted the platform.

Editor’s note: This story has been updated to reflect Temu’s response.