CPSC Calls for Investigation into Shein and Temu Over Safety Concerns

The U.S. Consumer Product Safety Commission (CPSC) has been urged to investigate E-commerce providers Shein and Temu regarding the sale of "deadly baby and toddler products." CPSC Commissioners Peter Feldman and Douglas Dziak expressed concerns about how the foreign platforms comply with U.S. regulations and manage third-party sellers. A letter published on the agency's website alleges that Shein and China's Temu, part of the PDD Group, are exploiting the de minimis rule to ship low-cost goods to the U.S. This rule allows shipments valued at under $800 per person per day, intended for American businesses and consumers, to be imported into the U.S. without duties or taxes. This practice has raised "specific concerns" at the CPSC. A spokesperson for Shein stated that the company has invested significantly in regulatory compliance. Earlier in 2024, the retailer announced a $50 million investment in compliance programs to ensure that safety standards and regulations are met. Temu has also pledged its cooperation in a potential investigation by the U.S. CPSC. In a statement, a company spokesperson emphasized that the e-retailer mandates all sellers to comply with relevant laws and regulations. The CPSC letter further states: "We want to better understand these companies, particularly their focus on direct-to-consumer shipping of low-value goods—sometimes called de minimis—and the enforcement challenges posed when firms with little or no U.S. presence distribute consumer products via these platforms." In May 2024, the European Consumer Organisation BEUC, representing 45 consumer organizations across Europe, filed a formal complaint with the European Commission against Temu for potential violations of the European Union's online content rules. In June 2024, the human rights organization Stop Uyghur Genocide also launched a legal campaign to block Shein's initial public offering on the London Stock Exchange.