Temu Lawsuit Update December 2025, No Settlement Yet—Cases in Arbitration, Here’s What You Need to Know
The Truth: There is NO Temu class action settlement accepting claims right now. Federal courts ruled in September 2025 that privacy claims must go to individual arbitration—not a public class action. Law firms like Labaton Keller Sucharow are accepting individual arbitration claims for potential payouts of $800-$5,000 per person. Temu also paid a separate $2 million FTC fine in September 2025 for marketplace violations—but that money went to the government, not consumers. Here’s what Temu app users need to know about claiming compensation.
Current Status: No Class Action Settlement, Only Individual Arbitration
What’s Actually Happening:
A federal judge ruled in September 2025 that Temu users must pursue claims through individual arbitration instead of a class action lawsuit. This means:
❌ No class action settlement
❌ No official claim form distributed to all users
❌ No automatic payments
✅ Individual users can file private arbitration claims through law firms
✅ Law firms handling thousands of individual cases
✅ Potential payouts: $800-$5,000 per person
Two Separate Temu Legal Actions:
- Privacy Class Action (now in arbitration) – Consumers can potentially get money
- FTC INFORM Act Settlement (finalized September 2025) – $2M paid to government, no consumer payments
The Privacy Lawsuits: What Temu Allegedly Did
Multiple lawsuits filed in New York and Illinois federal courts allege Temu’s shopping app contains “cleverly hidden spyware” that illegally collects user data.
What Experts Found:
Cybersecurity researchers claim the Temu app accesses:
- Text messages and private communications
- Photos and camera
- Contacts and call logs
- Biometric data (fingerprints, facial recognition)
- Location tracking via GPS, Wi-Fi, and Bluetooth
- Clipboard content
- Banking and financial information
- Social security numbers
- Calendar and email content
How It Allegedly Works:
According to court filings, Temu uses:
- Dynamic code execution – App can change behavior remotely without user knowledge
- Permission manipulation – Makes it easy to accidentally grant invasive permissions
- Background tracking – Collects data even when app is closed
- Third-party website monitoring – Tracks your activity outside the Temu app
The Legal Claims:
Plaintiffs allege Temu violated:
- Computer Fraud and Abuse Act
- Electronic Communications Privacy Act of 1986
- Illinois Biometric Information Privacy Act (BIPA)
- Massachusetts Right to Privacy Law
- California privacy statutes
- Various state consumer protection laws
Why These Cases Are Now in Arbitration (Not Court)
September 2025 Ruling:
A New York federal judge enforced Temu’s arbitration clause, ruling that when users created accounts and agreed to terms of service, they consented to individual arbitration for disputes.
What This Means:
- Claims cannot proceed as a public class action
- Each user must file individually through private arbitration
- Arbitration is confidential—results not public
- Users cannot join together in one large lawsuit
Claims Against Temu’s Parent Company:
The Illinois case includes PDD Holdings (Temu’s Chinese parent company) as a defendant. The court allowed discovery to determine whether PDD Holdings can enforce the arbitration agreement since users didn’t directly contract with the parent company.
Who Was Dismissed:
Claims from non-users (people who never had Temu accounts but whose data was allegedly collected through communications with Temu users) were dismissed for lack of standing.
Who Qualifies for Arbitration Claims
You may qualify if you:
✓ Downloaded and used the Temu mobile app
✓ Are a U.S. resident
✓ Used the app between July 2022 and present
✓ Created a Temu account
✓ Made purchases through the app
States with strongest claims:
- Illinois (BIPA violations for biometric data)
- California (comprehensive privacy statutes)
- Massachusetts (right to privacy law)
- Virginia (consumer protection laws)
You do NOT need:
- Proof of data theft
- Evidence of identity theft
- Documentation of harm
- Purchase receipts (though they strengthen claims)
How to File an Individual Arbitration Claim
Law Firms Accepting Claims:
Labaton Keller Sucharow (via Lantern Platform)
Website: Lantern.labaton.com/case/temu
Process:
- Complete online intake form
- Sign attorney-client agreement
- Answer detailed questions about app usage
- Upload any supporting documents
- Law firm files arbitration on your behalf
Fee: Contingency basis (percentage of recovery, typically 33-40%)
Potential Recovery: Up to $5,000 per person depending on applicable laws
Hagens Berman
Website: HBSSlaw.com/cases/temu-shopping-app-consumer-rights
Process:
- Submit case information online
- Firm evaluates your claim
- If accepted, firm represents you in arbitration
Fee: Contingency basis
Track Record: Secured $320 billion in consumer settlements over firm history
Other Options
Multiple law firms are accepting Temu arbitration claims. Search for “Temu arbitration claim” to find additional representation.
What Documentation Helps Your Claim
Strengthens Your Case:
- Screenshots showing Temu app installed
- Purchase history from Temu
- Account creation date
- Screenshots of app permissions granted
- Records of unusual account activity
- Evidence of identity theft attempts (if applicable)
Not Required:
- Proof of actual data theft
- Technical evidence of spyware
- Documentation of financial harm
Timeline: How Long Until Payment?
Realistic Expectations:
Arbitration typically takes 6 months to 2 years per case. Key factors:
- Claim Filing: 1-2 weeks after you sign up with law firm
- Arbitration Process: 6-18 months
- Award/Settlement: Varies by case
- Payment: 30-60 days after resolution
Mass Arbitration Strategy:
When thousands of users file simultaneously, companies often settle to avoid arbitration fees. This could accelerate resolution.
The Separate FTC Settlement: $2M Penalty
Important: This is NOT the same as the privacy lawsuits.
What Happened:
In September 2025, Temu agreed to pay $2 million to resolve Federal Trade Commission allegations it violated the INFORM Consumers Act.
What Temu Did Wrong (According to FTC):
- Failed to disclose seller information for high-volume third-party sellers
- Didn’t provide phone mechanism for consumers to report suspicious listings
- Made required disclosures difficult to find
- Violated transparency requirements for online marketplaces
Consumer Impact:
❌ No money goes to consumers
❌ No claim form for users
✅ Temu must improve seller disclosure practices
✅ Temu must add phone reporting mechanisms
Recent Developments
December 2025: Arbitration proceedings continue for thousands of individual claims
September 2025:
- New York federal judge rules arbitration clause valid
- FTC settlement finalized ($2M to government)
- Claims from non-users dismissed
2024-2025:
- Congressional investigation into Temu’s ties to Chinese government
- U.S.-China Economic Security Review Commission raises national security concerns
- Arkansas Attorney General warns about Temu’s data collection
Ongoing:
- Thousands of individual arbitration claims being filed
- Illinois case continues discovery on PDD Holdings enforcement
- Multiple law firms actively recruiting claimants
What Temu Says
Official Responses:
Temu denies all allegations and states:
- Claims are “largely derived” from short-seller reports with financial motives
- Data collection is within legal bounds
- Privacy disclosures are adequate
- Terms of service require arbitration
March 2024 Statement:
Temu acknowledged “the need for greater transparency in communicating data and security practices.”
Related Security Concerns
Google and Apple Actions:
- 2023: Google suspended Temu’s sister platform Pinduoduo from Play Store after finding malicious software
- Apple raised concerns about Temu violating privacy rules
- Apple found Temu “misled people about how it uses their data”
National Security Warnings:
U.S. lawmakers and security experts warn Temu’s data collection poses risks because:
- Chinese law requires companies to provide data to government upon request
- Temu’s parent company PDD Holdings based in China
- Massive data collection could create national security vulnerability
Common Questions About Temu Claims
Q: Can I file a claim right now and get money?
Yes, but only through individual arbitration with a law firm, not a class action settlement. No official settlement exists yet.
Q: How much money can I actually get?
Potential awards range from $800-$5,000 per person depending on which laws apply and arbitration outcome. No guaranteed amounts.
Q: Do I need to delete the Temu app first?
Not required, but cybersecurity experts recommend deleting the app and changing passwords for accounts you accessed on devices with Temu installed.
Q: What if I never purchased anything, just browsed?
You may still qualify. The allegations involve data collection from all app users, not just purchasers.
Q: Is this arbitration claim legitimate or a scam?
Legitimate if filed through established law firms like Labaton Keller Sucharow or Hagens Berman. Beware of firms asking for upfront fees—legitimate arbitration claims are on contingency.
Q: Why was the FTC settlement only $2 million?
That settlement addressed different violations (marketplace disclosure requirements) not privacy issues. The $2M was a government penalty.
Q: Can I opt out of arbitration and sue in court?
Generally no. The September 2025 ruling found arbitration agreements valid for users who accepted terms of service.
Q: What’s the deadline to file?
No firm deadline yet, but statutes of limitations vary by state (typically 1-3 years from when violation occurred). File sooner rather than later.
Q: Will I have to testify or appear anywhere?
Arbitration is typically document-based. You likely won’t need to appear in person.
How to Protect Yourself Now
Immediate Actions:
- Delete the Temu app from all devices
- Review app permissions and revoke any Temu access
- Change passwords for banking, email, and sensitive accounts
- Monitor credit reports at AnnualCreditReport.com
- Enable two-factor authentication on important accounts
- Check for identity theft at IdentityTheft.gov
Consider Filing:
If you used Temu app, filing an arbitration claim costs nothing upfront and could result in compensation. Law firms work on contingency.
Stay Updated:
- Bookmark law firm case pages
- Check for settlement administrator announcements
- Monitor legal news sites for updates
The Bigger Picture: Chinese E-Commerce Apps
Growing Scrutiny:
Temu isn’t alone. Similar concerns raised about:
- Shein: Congressional investigation over data practices
- TikTok: Ongoing national security concerns
- CapCut: Class action over data privacy violations
Policy Implications:
U.S. lawmakers considering:
- Stricter data privacy laws for foreign apps
- INFORM Act enforcement for all marketplaces
- Enhanced scrutiny of Chinese-owned platforms
What Happens Next
Short Term (Next 3-6 Months):
- Thousands more individual arbitration claims filed
- Possible mass settlement negotiation if arbitration costs mount
- Illinois case discovery on PDD Holdings continues
Medium Term (6-12 Months):
- Early arbitration decisions may establish precedents
- Settlement discussions likely if Temu faces high arbitration costs
- Additional regulatory scrutiny expected
Long Term (1-2 Years):
- Individual arbitration awards distributed
- Possible negotiated settlement covering all claims
- Congressional action on e-commerce data privacy
Case Information
Privacy Lawsuits:
Illinois Case: Ziboukh et al. v. Whaleco Inc. D/B/A Temu, et al., Case No. 1:23-cv-15653, U.S. District Court for the Northern District of Illinois
New York Case: Similar claims, moved to arbitration September 2025
FTC Settlement: United States v. Whaleco Inc., D/B/A Temu, U.S. District Court for the District of Massachusetts (September 2025)
Plaintiffs’ Counsel:
- Hagens Berman Sobol Shapiro LLP
- Labaton Keller Sucharow LLP
- Aurelius Law Group LLC
Critical Warnings
Beware of Scams:
- Never pay upfront fees to file arbitration claims
- Verify law firm legitimacy before sharing information
- Don’t trust “settlement” websites asking for banking details
- Real arbitration claims are free to file (contingency basis)
No Settlement Yet:
Despite what some websites claim, there is NO approved Temu class action settlement with a claim form accepting submissions right now. Only individual arbitration claims are available.
Verify Information:
- Check law firm websites directly
- Confirm firms are licensed attorneys
- Read attorney-client agreements carefully
- Understand contingency fee structures
Sources: Court filings in Ziboukh v. Whaleco Inc., Case No. 1:23-cv-15653 (N.D. Ill.); September 2025 arbitration ruling; FTC press release September 8, 2025; U.S. Department of Justice announcement; Hagens Berman case page; Labaton Keller Sucharow Lantern platform; Top Class Actions reporting; U.S.-China Economic and Security Review Commission briefs.
Last Updated: December 2025. No settlement has been approved. Arbitration proceedings ongoing. Verify current case status through official law firm websites and court documents.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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