Calls for US investigation into Shein and Temu fast-fashion companies

Fast-fashion leaders Shein and Temu are encountering mounting pressure in the United States following calls from two prominent politicians for investigations into their operations, including accusations of forced labour and intellectual property infringement.

In Texas, Attorney General Ken Paxton initiated a probe into Shein, echoing similar investigations in multiple European nations. On the federal level, Senator Tom Cotton urged a nationwide investigation into Shein and Temu, labeling the companies as "Communist Chinese" platforms and alleging that they have caused extensive damage to US businesses through intellectual property theft.

Shein responded by stating that it takes concerns about its practices seriously. "We welcome constructive engagement with Attorney General Paxton," the company said, adding that it will cooperate fully with the investigation. However, Shein did not address Cottons request for a federal probe. The company is based in Singapore, though the majority of its products are manufactured in China, where the brand was originally founded.

In a letter to US Attorney General Pam Bondi, Senator Cotton noted that millions of packages from China are now held in US warehouses following regulatory changes in August. Former President Donald Trump eliminated the longstanding de minimis rule, which had allowed low-cost shipments to bypass tariffs. This change imposed duties and more stringent customs inspections, creating what Cotton described as a "golden opportunity" for the Department of Justice and Homeland Security to act against these platforms.

Small American brands and designers have accused Shein of rapidly copying their designs and selling them at significantly lower prices shortly after release. Cotton also alleged that Temu offers "sophisticated and deceptive fakes" on its platform, which boasts hundreds of millions of users. A US investigation found that a substantial portion of products purchased from Shein and Temu were likely counterfeit.

Attorney General Paxton highlighted concerns regarding Shein's potential reliance on forced labour, unsafe materials, and misleading marketing practices. The companys fast-fashion model has faced criticism for environmental damage and poor working conditions for factory staff.

Paxtons investigation will assess whether Sheins operations violate Texas law through the use of hazardous materials, unethical sourcing claims, and consumer data practices. "I will not allow cheap, dangerous, foreign goods to flood America and jeopardise our health," Paxton declared online.

In Europe, Shein faces EU scrutiny over the sale of childlike sex dolls and weapons via its third-party marketplace after French authorities raised concerns. Temu is similarly under investigation in France for distributing content potentially harmful to minors.

Shein is one of several companies under Paxtons oversight. Earlier, he filed a lawsuit against Roblox, accusing it of violating safety regulations and misleading parents about platform risks. Roblox has denied these claims, calling them misrepresentations of its service.

Author: Sophia Brooks