The US government may be preparing to investigate online shopping giants like Shein and Temu
Online stores like Temu and Shein are known for selling cheap products like baby clothes, kitchen gadgets and electronics. The Consumer Product Safety Commission (CPSC) wants to know the true costs that foreign online retailers are undercutting to sell these products at lower prices.
CPSC Commissioners Peter Feldman and Douglas Dziak released a joint statement today asking their staff to examine the effectiveness of foreign e-commerce sites. The statement cited Shein and Temu as two online retailers that “raise some concerns.”
Recent news reports of “lethal baby and toddler products” being sold on these platforms have started raising red flags for the CPSC. The latest report from Information found many baby and children’s products from Shein deemed unsafe, such as baby hoodies on sale that had been flagged by regulators as a choking hazard. News site for the fashion industry Fashion Dive found Temu selling children’s sleepwear with products that the CPSC determined violated “flammability standards for children’s sleepwear.”
A Shein spokesperson said in a statement sent to CNN that the safety of their customers remains their top priority and we are investing millions of dollars to strengthen our compliance programs. At the time, a Temu spokesperson told us it required “all vendors to open [its] platform to comply with applicable laws and regulations, including those related to product safety.” The spokesperson added: “Our interests are aligned with the US Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will fully cooperate with any investigation.”
The CSPC is not the first US government agency to scrutinize foreign e-commerce companies like Shein and Temu. Last year, the US-China Economic and Security Review Commission issued a brief on the challenges presented by “Chinese ‘fast fashion’ platforms.” The commission questioned these platforms for alleged exploitation of trade loopholes and concerns about their sale of materials that pose product safety risks, infringe patents and trademarks and used forced labor to make and sell products.
Update, September 05, 2024, 12:19AM ET: This story has been updated to add Temu’s statement.
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