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How do Temu's data privacy and payment security protections compare to Amazon or Shein?
Executive summary
Temu’s data practices have drawn repeated scrutiny in reporting and lawsuits for broad data collection and sharing, with regulators and privacy observers saying it collects more data than many competitors; multiple pieces note extensive app tracking and state attorney‑general actions [1] [2]. By contrast, reporting portrays Amazon and Shein as using standard industry security measures for payments (HTTPS/TLS, third‑party processors) though Amazon’s massive data collection across services is also noted as a separate concern; several comparisons say payment encryption is similar across platforms while Temu’s privacy posture is described as more aggressive or opaque [3] [4] [5].
1. Temu’s privacy spotlight: aggressive collection, legal pushback
Journalists and privacy guides describe Temu as collecting “a significant amount of personal information” when users install the app or browse the site, with independent reporting and state lawsuits alleging over‑broad collection, sharing with third parties, and even device access concerns that led to attorney general suits in multiple states [5] [2] [1]. Mexico’s regulator IFT concluded Temu collected a larger volume of user data than peers in a cross‑service review, and consumer trust metrics cited in reporting show Temu lagging far behind Amazon [3]. Some longform explainers frame Temu’s parent company being subject to Chinese data rules as an added reason for privacy‑minded scrutiny [5].
2. Payment security: industry standards, not a glaring gap
Multiple consumer‑facing guides and security blogs say Temu uses standard web and transaction security (HTTPS/TLS/SSL) and that transactions are encrypted and routed through payment processors, producing a level of payment security comparable to other major marketplaces; these sources recommend preferred options like PayPal, Apple Pay or virtual cards for added protection [6] [7] [8]. Reviews comparing Temu with Shein and Amazon typically report that payment processing itself is secure across platforms, with differences centering on privacy policy transparency and post‑purchase service rather than raw encryption strength [4] [9].
3. How Amazon and Shein compare on privacy and data use
Reporting describes Amazon as collecting large amounts of data across many services (shopping, Alexa, logistics), which raises its own privacy questions distinct from Temu’s app‑specific allegations; Amazon nonetheless benefits from far higher consumer trust in surveys cited by commentators [3] [10]. Shein is frequently characterized as having its own data‑collection and product‑quality controversies but is not the subject of the same wave of state lawsuits over device‑level data exfiltration reported against Temu; comparative pieces say both Shein and Temu collect extensive personal information though payment handling uses standard gateways [9] [11].
4. Where sources agree and where they diverge
Sources agree: payments on Temu, Shein, and Amazon are processed with standard encryption and third‑party payment partners, so card‑transaction security is roughly comparable [6] [4] [7]. Where they diverge: privacy experts, regulators, and some investigative reports flag Temu for unusually broad data collection and legal challenges alleging misuse or covert monetization of user data [2] [1], while other consumer guides and vendor comparisons emphasize Temu’s stated policies and technical protections, portraying it as within normal e‑commerce practice [12] [13].
5. Practical takeaways for shoppers and sellers
If your chief concern is payment fraud or leaking card numbers, available reporting indicates all three platforms use TLS/SSL and established payment processors, and many experts recommend using digital wallets, PayPal or virtual cards to reduce risk [6] [8] [7]. If your concern is broader data privacy — behavioral profiling, device‑level telemetry, or sharing with third parties — current reporting singles out Temu for higher‑than‑typical collection and has documented regulatory/legal scrutiny that buyers should weigh [5] [2] [1].
6. Limits of the available reporting
Available sources focus on privacy practices, app behavior, and regulator actions through 2024–2025; they document lawsuits, regulatory reports, and privacy analyses but do not provide independent forensic lab results in every case or a point‑by‑point technical audit comparing backend controls at the three companies [2] [3]. Where claims are disputed or under litigation, readers should note that some outlets emphasize legal complaints while others emphasize company statements asserting standard practices [2] [12].
If you want, I can extract the specific passages in Temu’s privacy policy that commentators cite, list the states that filed suits, or map recommended payment mitigations (virtual cards, wallets, PayPal) with links to the sources above.