PDD to Pay Texas $3 Million in Temu Data Security, Product Safety Settlement

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PDD (PDD) agreed to strengthen data security and product safety practices at its Temu shopping platform and pay $3 million to Texas under a settlement announced by the state's attorney general, Ken Paxton, Friday.

The settlement requires Temu to store Texans' personal data on US-based servers controlled by American entities and restrict China-based access, with exceptions for essential business functions. Certain data security violations could incur an $8 million annual penalty.

Temu must conduct annual independent product safety testing and remove products found to contain hazardous substances, terminate the sellers and affiliated stores, notify affected Texas consumers and issue full refunds.

Paxton sued PDD and Temu in February 2026, alleging that the platform exposed Texans' sensitive data to the Chinese Communist Party and that products sold on the platform could contain harmful chemicals, he added.

Price: 81.74, Change: -0.68, Percent Change: -0.83

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