The US Consumer Products Safety Commission (CPSC) has been urged to investigate e-commerce retailers Shein and Temu regarding the sale of “deadly baby and toddler products.”
CPSC commissioners Peter Feldman and Douglas Dziak have expressed concerns over how the foreign-owned platforms comply with US regulations and manage relationships with third-party sellers.
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A letter posted on the agency’s website claims that Shein and China’s Temu, a part of PDD Group, leverage the de minimis rule [which refers to something too small to be taken into account or to be meaningful] to ship low-cost merchandise into the US.
The rule permits shipments valued under $800 per person per day destined for American businesses and consumers to enter the US without incurring duties or taxes.
This practice has raised “specific concerns” for the CPSC.
In response, a spokesperson for Shein said that it is investing heavily in compliance.
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By GlobalDataIn early 2024, the retailer announced a $50m investment into compliance programmes to ensure adherence to safety standards and regulations.
Temu has also pledged cooperation with any investigation by the US CPSC, with a spokesperson affirming the e-retailer’s commitment to requiring all sellers to comply with relevant laws and regulations.
The letter on the CPSC’s website read: “We 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 US presence distribute consumer products through these platforms”
In May 2024, the European Consumer Organisation BEUC, representing 45 consumer entities across Europe, lodged a formal complaint with the European Commission against Temu for potentially violating the European Union’s online content rules.
Human rights organisation Stop Uyghur Genocide also initiated a legal campaign in June 2024 to prevent Shein from listing on the London Stock Exchange.
