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Two leaders of the US Consumer Products Safety Commission are calling for the agency to investigate e-commerce retailers Shein and Temu after “deadly baby and toddler products” were sold on both websites, according to a letter posted on the US CPSC website on Tuesday.
US CPSC Commissioners Peter Feldman and Douglas Dziak want the agency to evaluate how Singapore’s Shein, China’s Temu and other foreign-owned e-commerce platforms comply with its rules, handle relationships with third-party sellers and represent imported products.
Shein and PDD Group’s Temu, which both ship cheap merchandise into the US from China, are raising “specific concerns” for the Commission for their use of de minimis, a rule exempting packages valued at $800 or less from tariffs if they are sent directly to shoppers.
Critics of Shein and Temu attribute low prices and de minimis to Shein and Temu’s success in the US Both companies have also come under scrutiny for the quality of their products.
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A bipartisan group of US lawmakers last year planned to introduce a bill to eliminate the de minimis, which is widely used by e-commerce platforms including third-party sellers on Amazon.com and Walmart.com.
By Arriana McLymore; Editing by Stephen Coates
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Growth is slowing, competition is getting intense and regulators have the fast-fashion retailer in their sights. But despite investor panic over its prospects, Temu remains an e-commerce powerhouse — one that Western competitors must continue to watch.