In a move that should send shockwaves through American consumers, U.S. safety regulators are now calling for a thorough investigation into Chinese-owned e-commerce platforms Temu and Shein. This comes after a disturbing report last month alleged that these companies were selling potentially deadly baby and toddler products to unsuspecting American families.
U.S. Consumer Product Safety Commissioners Peter Feldman and Douglas Dziak have taken the lead, sending a pointed letter on Tuesday to the agency, urging them to probe into the safety protocols, seller relationships, and import practices of these Chinese retailers. “We seek to better understand these firms, particularly their focus on low-value direct-to-consumer — sometimes called de minimis — shipments and the enforcement challenges when firms with little or no U.S. presence distribute consumer products through these platforms,” the commissioners emphasized.
The timing of this investigation push is crucial. Last month, The Information reported that both Temu and Shein were making it frighteningly easy for dangerous baby products to find their way into American homes. Among the alarming items were padded crib bumpers, which Congress banned two years ago due to their well-documented suffocation hazards. These items were openly available on Temu’s platform. Equally troubling, Shein was found selling children’s hoodies with drawstrings, a product that U.S. regulators have long warned poses a significant choking risk.
Temu’s response to the controversy has been predictably defensive. “Temu requires all sellers on our platform to comply with applicable laws and regulations, including those related to product safety,” a spokesperson stated, adding that the company’s interests are “aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety.” However, many are likely to view such statements with skepticism, especially given the growing concerns about the safety of Chinese imports.
Shein, meanwhile, touted its efforts to improve safety compliance, claiming it has already spent over $10 million on global safety measures, with plans to invest an additional $50 million. “Our global team, including more than 1,000 U.S. employees, remains steadfast in its commitment to quality and safety for our customers,” a Shein spokesperson said. Yet, the question remains: Can these companies truly be trusted to protect American consumers?
Temu and Shein have surged in popularity, drawing in consumers with their ultra-low prices and trendy products. Founded in 2008 and launching in the U.S. in 2017, Shein has rapidly grown into a $66 billion behemoth. Temu, owned by China’s PDD Holdings and based in Boston, was launched in the U.S. just last year, quickly catching up to its rival. Both companies rely heavily on a vast network of Chinese suppliers, who are reportedly pitted against each other to secure the lowest prices possible.
Their meteoric rise has also been fueled by the de minimis exception, which allows low-cost, lightweight packages to enter the U.S. duty-free, effectively undercutting American businesses. This loophole has drawn the ire of many, and now U.S. safety regulators are asking for the resources to monitor these companies more closely.
Legal troubles are nothing new for Temu and Shein, both of which have faced accusations of copyright infringement and even turned on each other in court over stolen clothing designs and internal documents. However, the stakes are now higher as the safety of American children is called into question.
As the 2024 election cycle heats up, expect lawmakers and regulators to keep a close eye on these Chinese e-commerce giants. The American public deserves better, and it’s high time that companies like Temu and Shein are held accountable for the products they bring into our country.
