Why fast-fashion giants Shein, Temu are facing scrutiny in US
What's the story
Fast-fashion giants Shein and Temu are under increased scrutiny in the US. Texas Attorney General Ken Paxton has launched an investigation into Shein over allegations of forced labor and unsafe materials. Meanwhile, at the national level, Senator Tom Cotton has called for a federal investigation into both Shein and Temu.
Statement
What did Senator Cotton say?
Cotton described these "Communist Chinese" platforms as being involved in intellectual property theft that has "devastated" US firms. In response to the investigation by AG Paxton, Shein said it takes concerns about its business practices seriously and welcomes constructive engagement.
Operations
Shein's business model under scrutiny
Shein, which is based in Singapore but sells mostly Chinese-made goods, has been accused by designers and small American brands of copying their original creations. These are often sold at a fraction of the price just days after launch. Cotton also accused Temu of carrying "sophisticated and deceptive fakes" on its platform with hundreds of millions of users.
Ethical concerns
Texas AG's investigation into Shein's practices
Paxton has raised concerns over Shein's alleged use of forced labor, unsafe materials, and deceptive marketing. The investigation will look into whether these practices violate Texas law by allegedly using hazardous materials and misleading consumers about ethical sourcing. It will also examine Shein's data collection practices. "I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health," Paxton said.
Worrying
Shein faces EU scrutiny over controversial products
Beyond the US, Shein is also facing pressure from the European Union. The bloc has called for a ban on sales of childlike sex dolls and weapons on its third-party marketplace. This comes after French authorities flagged these products last month. Temu is also under investigation in France for allowing harmful content to be accessed by young users.