Two commissioners of the U.S. Consumer Product Safety Commission have urged the commission to investigate the safety practices of “foreign-owned” e-commerce platforms like Shein and Temu, specifically over the alleged sale of “deadly baby products.”
In a letter Late TuesdayCPSC Commissioners Peter Feldman and Douglas Dziak said the agency should investigate Tem and Shane’s safety and compliance controls, their relationships with third-party distributors and consumers, and “any representations the companies make when their products are imported.”
“We seek to gain a better understanding of the enforcement challenges these companies, particularly those focused on low-value direct-to-consumer (also known as de minimis) shipments and those with little or no U.S. presence, face in distributing consumer products through these platforms,” ​​the commissioners wrote.
They also cited “deadly baby products” being sold on the platform. information Temu reportedly sells padded crib bumpers that are banned in the U.S. because they pose a choking hazard, while Shein sells children’s hoodies with drawstrings that regulators say pose a safety hazard.
Representatives for Temu and Shane did not immediately respond to requests for comment.
Discount retailers Temu and Shein have exploded in popularity in the U.S. by launching an online marketing offensive offering consumers cheap goods from China, ranging from $3 shoes to $15 smartwatches.
Shain launched in the US in 2017 and has recently been placing a large amount of ads on Google and Facebook to fuel its expansion. Reportedly Tem debuted in the U.S. in 2022 under PDD Holdings Inc. and quickly pumped billions of dollars into marketing, most notably a “Shop Like a Millionaire” TV spot that aired during this year’s Super Bowl. The company’s rise has attracted the attention of major e-commerce companies such as Amazon, which is looking to launch a rival discount store, CNBC previously reported.
Shein and Temu leverage relationships with small Chinese manufacturers and suppliers to ship goods directly from China to the U.S. Industry experts say much of the company’s growth is due to a trade loophole called the “de minimis exception,” which allows packages under $800 shipped from China to enter the U.S. duty-free.
According to The Information, CPSC officials have requested increased funding to hire staff to monitor safety practices on emerging e-commerce platforms like Temu and Shein.
Lawmakers are also scrutinizing the platform. Last April, a congressional committee The report was released It detailed its issues with Shein, Temu and other “Chinese ‘fast fashion’ platforms,” ​​alleging that the sites pose numerous product safety risks, are linked to the use of forced labor, and exploit trade loopholes, among other concerns.
clock: Tem has a “long way to go” to take market share from large incumbent e-commerce companies.
"Elevate Your Brand with an Exclusive Feature Interview!"