The US government may be preparing to investigate internet retail giants like Shein and Temu

Online retailers like Temu and Shein are known for selling cheap products like baby clothes, kitchen gadgets and electronics. The Consumer Product Safety Commission (CPSC) wants to know the true costs that foreign online retailers are cutting to sell these products at lower prices.

CPSC commissioners Peter Feldman and Douglas Dziak released a joint statement today calling for their staff to evaluate the operations of foreign e-commerce sites. The statement cites Shein and Temu as two online retail companies that “raise specific concerns.”

Recent news reports of “deadly baby and toddlers products” being sold on these platforms started to raise red flags at the CPSC. A recent report from The Information found several baby and children’s products on Shein deemed to be unsafe, such as children’s drawstring hoodies for sale that had been flagged by regulators as a strangulation risk. The fashion industry news site Fashion Dive found Temu selling children’s pajamas by brands that the CPSC ruled violated “the flammability standards for children’s sleepwear.”

A Shein spokesperson said in a statement to CNN that its customers’ safety remains their “top priority and we are investing millions of dollars to strengthen our compliance programs.” Meanwhile, a Temu spokesperson told us that it required "all sellers on [its] platform to comply with applicable laws and regulations, including those related to product safety." The spokesperson added: "Our interests are aligned with the US Consumer Product Safety Commission (CPSC) in ensuring consumer protection and product safety, and we will cooperate fully with any investigation."

The CSPC isn’t the first US government agency to scrutinize foreign e-commerce companies like Shein and Temu. Last year, the US-China Economic and Security Review Commission issued a brief detailing the challenges presented by “Chinese ‘fast fashion’ platforms.” The Commission questioned these platforms’ alleged exploitations of trade loopholes and concerns about its sale of items that posed product safety risks, violated copyrights and trademarks and used forced labor to make and sell products.

Update, September 05, 2024, 12:19AM ET: This story has been updated to add Temu's statement.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-us-government-may-be-preparing-to-investigate-internet-retail-giants-like-shein-and-temu-193218089.html?src=rss

HOT news

Related posts

Latest posts

XRP Bull Eyes $5-$8 in 2027 Regardless of Brief-Time period Headwinds

One analyst has mentioned that XRP might attain $5 to $8 in 2027, though it might must face additional weak point earlier than the...

Your telephone’s apps may have extra permissions than they want – here is the best way to verify

Most smartphone apps want permissions to perform correctly, however some might have extra entry than they need to. Fortunately, it's fairly simple to verify.

Anthropic’s Claude AI Predicts a Large BTC USD Transfer

Bitcoin (BTC) won't want one other halving, one other wave of institutional adoption, and even one other spherical of financial easing to ship one...

Ethereum Provide on Exchanges Hits a Decade Low: Is ETH Getting ready for a Main Transfer?

The world’s second-largest crypto asset by market cap has had a tough couple of weeks. However its change reserves have dropped to round 14.5...

Ethereum Worth Evaluation: ETH Recovers to $2.3K, however Bears Nonetheless Eye $2K

Ethereum stays underneath strain close to $2.3K after its newest restoration did not reverse the broader downtrend. With the ascending day by day channel...

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!