Temu Under Investigation in Nigeria Over Data Protection Concerns

Nigeria’s data protection regulator has launched a formal investigation into Temu, the rapidly expanding Chinese-owned e-commerce platform, amid concerns over potential data privacy breaches and opaque data handling practices. The Nigeria Data Protection Commission (NDPC) initiated the probe following indications that the company processes the personal data of approximately 12.7 million Nigerians.

The investigation, ordered by NDPC National Commissioner and Chief Executive Officer Vincent Olatunji, will focus on several key areas, including online surveillance through personal data processing, accountability measures, adherence to data minimization requirements, transparency in data usage and compliance with cross-border data transfer regulations. Olatunji warned that organizations processing data on behalf of others must verify compliance with the Nigeria Data Protection Act of 2023, stating that those failing to do so could be held liable.

Temu’s swift ascent in Nigeria, mirroring its global expansion, has drawn increased scrutiny from regulators worldwide. The platform entered the Nigerian market in late 2024 and quickly rose to prominence, capitalizing on a young, digitally engaged population and a growing appetite for affordable online retail. Backed by PDD Holdings, Temu has expanded to over 90 markets globally since its 2022 launch in the United States, employing a strategy of deep discounts and aggressive advertising to attract customers.

The NDPC’s action signals a more assertive stance towards both local and foreign digital operators, following a 766 million naira fine levied against MultiChoice Nigeria last year for data protection violations. This demonstrates Nigeria’s commitment to strengthening oversight of digital companies operating within its borders.

While Temu initially did not respond to Nigerian regulators, the company later issued a statement pledging full cooperation. “At Temu, protecting user privacy and data security is a top priority. We are committed to complying with applicable laws and regulations in our data practices. We will continue to engage in open and constructive dialogue with the NDPC to address any questions or concerns,” the company stated.

The Nigerian investigation is part of a broader pattern of regulatory challenges facing Temu internationally. In May 2025, South Korea’s Personal Information Protection Commission fined Temu approximately $978,000 for undisclosed cross-border data transfers and insufficient oversight of its data processors. In the United States, the Federal Trade Commission imposed a $2 million penalty on Temu in 2025 under the INFORM Consumers Act, alleging failures in transparency regarding high-volume sellers and inadequate reporting of potentially counterfeit goods.

Temu is currently under scrutiny in Europe, where the European Commission has issued preliminary findings suggesting potential breaches of the Digital Services Act. If these findings are confirmed, Temu could face substantial fines, potentially reaching up to six percent of its global annual revenue – a significantly larger financial risk than the penalties already incurred in the U.S. And South Korea.

The concerns surrounding Temu extend beyond data privacy. The European Commission’s investigation also centers on the platform’s alleged failure to adequately prevent the sale of illegal products. This multifaceted regulatory pressure highlights the challenges Temu faces as it continues its aggressive global expansion.

The outcome of the NDPC’s investigation in Nigeria is likely to have broader implications for how global digital platforms approach African markets. For regulators, the case represents a crucial test of the country’s relatively new data protection regime. For Temu, it presents another significant hurdle in its ambitious pursuit of global dominance in the online shopping industry. The investigation underscores the growing importance of data protection compliance for companies operating in an increasingly regulated digital landscape.