Exclusive: US Republican senator urges DOJ and Homeland Security to investigate Shein, Temu for counterfeiting

NEW YORK, Dec 1 (Reuters) - U.S. Senator Tom Cotton, a Republican from Arkansas, addressed a letter on Monday to Attorney General Pam Bondi urging the U.S. Departments of Justice and Homeland Security to examine online marketplaces Shein and Temu. Both companies primarily ship products from China, and Cotton highlighted concerns over large-scale intellectual property violations and counterfeit goods.

The letter, obtained by Reuters, comes amid growing attention on Shein and Temu, known for selling items like $20 shirts and $10 accessories, especially after the expiration of a U.S. trade exemption that had previously boosted their popularity in the region. Shein is privately owned, while Temu operates under PDD Holdings. Shein has not yet responded to a request for comment, and Temu stated that comments were unavailable outside regular business hours.

Shein has stated in the past that it requires suppliers to confirm their products do not infringe trademarks or constitute counterfeits. The company maintains a dedicated team to monitor compliance and takes prompt action against violations.

Senator Cotton noted that the end of the de minimis exemptionwhich allowed items valued under $800 to enter the U.S. duty-freehas compelled both companies to adjust their operations. "These firms now maintain large stockpiles in U.S. warehouses and distribution hubs. Their merchandise is no longer bypassing customs," Cotton wrote. "Now, it is physically present on American soil, under U.S. jurisdiction."

Additionally, Texas Attorney General Ken Paxton announced an investigation into whether Shein breached state laws concerning unethical labor practices and unsafe consumer products. In France, authorities recently requested a Paris court to suspend Sheins operations for three months over concerns involving the sale of childlike sexualized dolls and prohibited weapons.

(Reporting by Arriana McClymore in New York; Editing by Matthew Lewis)

Author: Sophia Brooks