Online retailers Shein and Temu are facing scrutiny in the United States following calls from two senior politicians for investigations into allegations of forced labor and intellectual property theft. Texas Attorney General Ken Paxton has initiated a probe into claims that Shein employs forced labor and uses unsafe materials in its products. Meanwhile, Senator Tom Cotton has requested a federal investigation into potential intellectual property violations involving both companies, which he described as “Communist Chinese” platforms.
Shein has stated that it takes these concerns seriously and welcomes engagement with Attorney General Paxton, offering to cooperate with his investigation. The company did not address Cotton’s federal inquiry directly. Shein is headquartered in Singapore, with the majority of its products manufactured in China.
In a letter to U.S. Attorney General Pam Bondi, Cotton highlighted the influx of packages from China in U.S. warehouses after changes to rules concerning low-cost shipments were implemented in August. This change, enacted by the Trump administration, subjected these packages to new levies and customs scrutiny. Cotton indicated that this regulatory shift presents a significant opportunity for the Department of Justice and Homeland Security to take action against the companies.
Allegations against Shein also include systematic copying of designs from American brands, with accusations that the retailer sells these imitations at lower prices shortly after the originals are launched. Cotton claims that Temu offers counterfeit products and referenced a U.S. investigation that identified many items purchased from both platforms as likely to be fakes.
Additionally, Paxton’s investigation will assess whether Shein’s practices breach Texas laws related to the use of hazardous materials and consumer deception regarding ethical sourcing. The inquiry will also examine Shein’s data collection methods. Shein is already under regulatory pressure in the European Union to restrict the sale of inappropriate items on its marketplace, while Temu is facing similar scrutiny in France regarding harmful content accessible to minors.
Source: https://www.bbc.com/news/articles/c2lvzeyk21vo?at_medium=RSS&at_campaign=rss