US Probes Shein and Temu Over Labour, IP Theft, and Safety Claims

Fast-fashion retailers Shein and Temu are under mounting scrutiny in the US after senior politicians called for investigations into alleged forced labour, intellectual property theft, and unsafe products.

Texas Attorney General Ken Paxton launched a probe into Shein, echoing similar inquiries in Europe. Meanwhile, Senator Tom Cotton urged a federal investigation into both companies, describing them as “Communist Chinese” platforms that have harmed American businesses through intellectual property theft.

Shein said it takes concerns seriously and will cooperate with the Texas investigation. Headquartered in Singapore, most of Shein’s merchandise is produced in China. Temu has not yet commented publicly.

Cotton highlighted that new US rules ending the longstanding tariff exemption for low-cost shipments have left millions of packages from China in warehouses, presenting a “golden opportunity” for federal authorities. He also accused Temu of selling counterfeit goods and Shein of copying designs from US brands at low prices.

Paxton’s investigation will examine Shein’s use of forced labour, unsafe materials, deceptive marketing, and data collection practices. He emphasized protecting Americans from “cheap, dangerous, foreign goods.”

Both companies are facing additional scrutiny in Europe. Shein has been asked to curb sales of childlike sex dolls and weapons, while Temu is under investigation in France for harmful content accessible to young users.

These moves align with a broader pattern of regulatory action targeting foreign digital and retail platforms, including recent lawsuits against Roblox for alleged safety violations.