CINCINNATI — Temu, the popular online shopping platform, has lost some of its appeal this holiday season as shoppers face rising prices and the company battles a lawsuit from Arizona's attorney general.
The changes mark a dramatic shift for the bargain shopping site that once captivated consumers like Jill Ernst, who earlier this year showed us her Temu hauls, including an inexpensive sweater, a multi-level laundry basket and a pet gate for less than $5.
But a lot has happened since then.
In the spring, a presidential order hit Temu and competitor site Shein with tariffs. And just this month, a lawsuit from the state of Arizona delivered another blow to the company.
"The scope of this invasion of privacy is ridiculous," Arizona Attorney General Kris May said.
WATCH: Why customers are starting to abandon Temu
The AG's lawsuit claims Temu collects personal data from phones, including users' locations, sells items that do not match their descriptions and provides counterfeit products, such as sports team merchandise.
Temu has released a statement saying the company "denies the allegations in the lawsuit and will defend itself vigorously."
In addition, U.S. Senator Tom Cotton of Arkansas is asking the Department of Justice to investigate Temu for intellectual property theft.
However, the bigger complaint shoppers have this holiday season involves price hikes. Shopper Brenda Buschle told us prices on some items she watches have doubled.
"I had ordered a three-pack of Capri pants. They were $17, and they went up to $36," Buschle said.
In addition, she says the retailer has been offering fewer choices since it began sourcing its items from US-based warehouses a few months ago.
If Temu's biggest advantage — super low prices — is not what it was, shoppers like Buschle may return to Walmart and Amazon for their bargain shopping.
While deals can still be found at Temu, for many shoppers, some of the excitement has worn off as the platform faces mounting challenges this holiday season.
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