Temu responds to complaints of data theft: “They are unfounded”

Temu responds to complaints of data theft: “They are unfounded”
Temu responds to complaints of data theft: “They are unfounded”

04:05 PM

After the Chinese e-commerce platform Temu burst into the Colombian and Latin American market in recent months, which with its direct factory-to-consumer business model has gained thousands of customers and great popularity on social networks for its low prices. , several complaints and accusations have arisen regarding “excessive collection of personal data” by its parent company.

The platform is responsible for PDD Holdings, a Chinese e-commerce company based in Boston, United States, and listed on Nasdaq. According to its most recent financial results, published on March 21, Temu’s revenue reached $12 billion in 2023, an increase of 123% compared to 2022a dizzying growth compared to its direct competition in the US, Amazon, which reported an increase of 12% and $574.8 billion in profits.

One of the reports that has raised the most suspicions about the app was carried out by the analysis firm Grizzly Researchwhich denounces that this store could actually be a spyware (malicious program) sophisticated and, according to them, “represents an urgent security threat”which has raised a strong controversy, especially in North American territory.

Faced with these accusations, spokespersons for the Asian company affirm that the report “was published with the intention of creating panic and causing Temu’s share prices to fall,” and they describe these allegations as unfounded.

This is what they say in an exclusive interview with EL COLOMBIANO, in Temu’s first in-depth statement before Spanish-speaking media. Given the wave of doubts that have arisen about the transparency and security of the processing of customer data worldwide, official spokespersons for the company, led by its co-president and founder, Jiazhen Zhao, answered several questions to this media outlet. .

As they commented, “Temu is committed to following the strictest privacy and security standards” and, contrary to what the study suggests, Grizzly Research“never sell” their customers’ information and protect credit card data with encryption systems.

How does Temu address data privacy and security?

“At Temu, we prioritize privacy protection and are transparent about our data practices. We collect information for a clear and singular purpose: to provide and continually improve our products and services for our users.

If there is a possibility that data will be collected in a given scenario, we disclose it. This is in line with developer requirements set by app marketplaces like Apple’s App Store.

We only collect and use the data necessary for specific and justified situations, so that our service works effectively.”

How does Temu respond to the accusations of Grizzly Research?

“As Zhao Jiazhen said in the third quarter earnings call, there is healthy competition and malicious competition. Sometimes competition can easily evolve into unhealthy market practices, and those who do it well will always attract attacks. For example, we noticed that short selling report about our company was published in early September.

But the report’s allegations are totally unfounded. At first glance, the report was published with the intention of creating panic and driving down our stock prices, which would allow that company to profit from shorting decisions.

Upon further investigation, we discovered that the instigators of the report actually took further follow-up actions. His motives and unusual actions are quite evident. “We are encouraged to see that the majority of investors understood the underlying motives and saw through the unfounded accusations.”

How did Temu react to the report and accusations of Grizzly Research?

“The share price of Temu’s parent company, PDD Holdings, has risen more than 40% since the report was published in early September.

Although the report was completely unfounded, we recognize the need to communicate our data practices and security protocols to users openly and transparently, and we have taken steps to improve communication.”

What steps has Temu taken to communicate its data and security practices to users?

“We have included prominent explanations on our website and app about the data we collect and its use. All users can see the permissions that Temu requests on the website or app in the ‘Settings’ or section Permissionon our website www.temu.com

To further understand our stance on data protection, users can also visit our comprehensive Privacy Policy on the same website.

At Temu, we prioritize privacy protection and are transparent about our data practices. We collect information for a clear and singular purpose: to provide and continually improve our products and services for our users.

What measures has Temu implemented to ensure the security of its platform?

“In November, Temu partnered with San Francisco-based cybersecurity agency HackerOne to offer a bug bounty program.

Temu joins companies such as Amazon, Google, Tesla and Facebook, which use the HackerOne platform to connect and reward ethical hackers for discovering and reporting security vulnerabilities.

Additionally, Temu is a TrustedSite Certified Secure Site that follows the Payment Card Industry Data Security Standard (PCI DSS) when handling card data by encrypting the data in storage and transmission.

We never sell customer information and do not receive card details for transactions using payment methods such as PayPal, Google Pay and Apple Pay.

The company works with major payment networks with their own security and authentication protocols for added protection, such as Visa Secure, MasterCard ID Check, American Express SafeKey, Discover ProtectBuy and JCB J/Secure. We consider privacy and security to be core features of our platform. Earning and maintaining the trust of our users is our top priority, which is why we adhere to the highest privacy and security standards.”

 
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