Shein, Temu: US regulators call for probe over reports of 'deadly’ baby products
FILE - This photo illustration shows the Temu app in the App Store reflected in videos of Shein consumers, in Washington, DC, on Feb. 23, 2023. (Photo by STEFANI REYNOLDS/AFP via Getty Images)
WASHINGTON - U.S. consumer safety officials this week called for an investigation into fast-fashion giant Shein and e-commerce site Temu over reports of "deadly baby and toddler products" allegedly offered on their platforms.
In a joint statement published on Tuesday, commissioners Peter Feldman and Douglas Dziak of the U.S. Consumer Product Safety Commission said the foreign-owned firms "raise specific concerns," citing "recent media reports that deadly baby and toddler products are easy to find on these platforms."
Shein, which was founded in China but is now based in Singapore, is a low-cost online retailer, selling trendy, affordable clothing and more. Shein has been the target of lawsuits from brands and designers that have accused the company of stealing their designs and selling copycat items on its platform. It also recently said it discovered two cases of child labor in its supply chain last year.
Temu, an online marketplace owned by Chinese e-commerce company PDD Holdings, has also grown in popularity in the U.S. – selling heavily discounted consumer goods.
Here's what Temu, Shein say in response
In a statement, Temu said it "requires all sellers on our platform to comply with applicable laws and regulations, including those related to product safety."
"Our interests are aligned with the U.S. Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation," Temu told FOX Television Stations.
For its part, Shein said customer safety "is our top priority and we are investing millions of dollars to strengthen our compliance programs."
"In the last year SHEIN has spent over $10 million building a strong global compliance function and developing partnerships with internationally renowned testing agencies such as Intertek, SGS, BV, and TUV, to further enhance our safety practices," the company said in a statement to FOX Television Stations.
"Earlier this year it was also announced that an additional $50 million dollars will be dedicated to fortifying our Global Compliance Center and initiatives to ensure strict adherence to our rigorous product safety standards and full compliance with applicable laws and regulations," it added.
Shein said its global team, including more than 1,000 employees in the U.S., remains "steadfast in its commitment to quality and safety for our customers, and we resolutely support the Commission's mandate."
CPSC protects consumers ‘from items that pose an unreasonable risk of injury’
The commissioners did not name any specific products, but cited a report from The Information, published on Aug. 13. The report detailed some alleged dangerous products for babies and toddlers available on the sites, such as padded crib bumpers and toddlers’ drawstring hoodies that "regulators say pose a strangulation risk."
The commissioners said in the joint statement, which refers to "Shein, Temu, and others," that they expect CPSC staff to investigate "the companies’ safety and compliance controls; relationships with third-party sellers and consumers; and any representations they make when products are imported."
"Manufacturers, retailers, importers, and distributors of consumer products all fall within the jurisdiction of CPSC, which is charged with protecting consumers from items that pose an unreasonable risk of injury," the commissioners said.
Feldman and Dziak said a probe would inform the agency "on the legal status of platforms like Shein and Temu."
"To the extent a platform falls outside the Commission’s reach, policymakers must understand where gaps exist and how best to address them," the statement said.
"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," it added.
RELATED: Amazon planning to launch discount store to compete with Temu and Shein
Shein, Temu and de minimis rule
The global online shopping that Shein and Temu offer has also come under scrutiny in recent months by lawmakers. Specifically, how stylish imports from the other side of the Pacific can be so cheap for American consumers.
A current trade policy known as the de minimis exception, which allows parcels valued under $800 to enter the U.S. duty-free per person per day, has been the topic of discussion among lawmakers of both parties.
While America’s Gen Z shoppers may celebrate their online bargains, lawmakers have questioned whether the rule allows manufacturers to avoid tariffs aimed at protecting American companies and bypass laws barring the imports of products made by forced labor, illicit drugs or unsafe materials.
In the recent joint statement, the CPSC commissioners said they "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."