The US government may be preparing to investigate internet retail giants like Shein and Temu
The US government may be preparing to investigate internet retail giants like Shein and Temu
Reports of unsafe baby products prompted the call to action from the Consumer Product Safety Commission.
Online retailers 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 cutting to sell these products at lower prices.
CPSC commissioners Peter Feldman and Douglas Dziak released a joint statement today calling for their staff to evaluate the operations of foreign e-commerce sites. The statement cites Shein and Temu as two online retail companies that “raise specific concerns.”
Recent news reports of “deadly baby and toddlers products” being sold on these platforms started to raise red flags at the CPSC. A recent report from The Information found several baby and children’s products on Shein deemed to be unsafe, such as children’s drawstring hoodies for sale that had been flagged by regulators as a strangulation risk. The fashion industry news site Fashion Dive found Temu selling children’s pajamas by brands that the CPSC ruled violated “the flammability standards for children’s sleepwear.”
A Shein spokesperson said in a statement to CNN that its customers’ safety remains their “top priority and we are investing millions of dollars to strengthen our compliance programs.” Meanwhile, a Temu spokesperson told us that it required “all sellers on [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 cooperate fully with any investigation.”
The CSPC isn’t 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 detailing the challenges presented by “Chinese ‘fast fashion’ platforms.” The Commission questioned these platforms’ alleged exploitations of trade loopholes and concerns about its sale of items that posed product safety risks, violated copyrights 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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