Federal Consumer Watchdog to Investigate Shein and Temu Over Safety Concerns
Chinese megafirms Shein and Temu are under scrutiny in Washington—again.
This time, the e-tailers are in the crosshairs of the U.S. Consumer Product Safety Commission (CPSC), which is calling on its staff to ascertain how—or if—”these foreign-owned firms that rely on overseas suppliers meet their obligations under the Consumer Product Safety Act.”
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A joint statement from CPSC Commissioners Peter A. Feldman and Douglas Dziak asked staff for an evaluation of Shein and Temu, as manufacturers, retailers, importers and distributors of consumer products fall under the organization’s purview, and it is charged with shielding shoppers from products that pose an “unreasonable risk of injury.” The platforms’ promises of cheap, China-made goods from fashion to electronics could leave consumers vulnerable, they believe.
The investigation will serve to inform CPSC and other federal government bodies of the platforms’ respective compliance with the law, Feldman and Dziak wrote.
“To the extent a platform falls outside the Commission’s reach, policymakers must understand where gaps exist and how best to address them,” they explained. “Likewise, the Commission must better understand what enforcement challenges exist with respect to foreign third-party sellers. Where agency compliance staff discover safety violations, we expect CPSC to initiate enforcement actions.”
The Commissioners went on to address “specific concerns” about the safety of products sold on the websites of the Singapore-based fast-fashion brand and China’s highest-valued e-commerce company. “We are aware of recent media reports that deadly baby and toddler products are easy to find on these platforms,” they wrote.
They are also aware of reporting that the firms’ sourcing portfolios have each ballooned to include thousands of factories and vendors for an array of items, they added. “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 letter said.
In establishing its priorities for 2025, the CPSC leads said they expect the agency to probe the companies’ safety and compliance controls, as well as their relationships with third-party vendors and end consumers. They also want a deep dive into “any representations they make when products are imported”—presumably to ascertain whether the shipments are safe and authentic.
“Third-party sellers, domestic and foreign, are proliferating on online platforms,” Feldman and Dziak added. “This form of commerce can benefit consumers and sellers in many ways, but CPSC must make clear its expectations regarding these platforms’ responsibilities to ensure safety.”
“We expect this review by Commission staff will inform what further steps are needed to protect American consumers,” they concluded.
Congresional lawmakers across both parties also have Shein and Temu in their sights.
In August, a bipartisan collective of Members of the House of Representatives took a swing directly at the and their unbridled use of the de minimis trade provision, which has allowed them to ship a combined 600,000 parcels directly to consumers’ doorsteps each day.
The Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains (FIGHTING) for America Act would reform the law with an eye toward stemming the flow of cheap, illicitly produced products—among them, apparel and textiles. It would give Customs and Border Protection (CBP) more authority to detain goods suspected to have been made with forced labor, as well as counterfeits and items that could contain fentanyl.
The crux of the proposal is tightening import requirements for shipments worth less than $800, precluding items that are sanctioned by any other trade action from entry. Textiles, apparel and leather goods are designated as import-sensitive under the Generalized System of Preferences (GSP), while a number of apparel and footwear products made in China are also subject to Section 301 duties.
If passed, the bill would give CBP accelerated procedures for disposing of the detained products, up penalties for those that violate the law, and establish a $2-per-shipment fee for each de minimis entry.
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