US regulators urge investigation into Shein and Temu over safety concerns

The US Consumer Product Safety Commission (CPSC) has been urged to investigate the safety practices of popular e-commerce platforms Shein and Temu, following reports that dangerous baby and toddler products are easily accessible on their sites.

In a joint statement released on 3 September 2024, commissioners Peter Feldman and Douglas Dziak called for a thorough examination of these foreign-owned platforms to determine their compliance with US safety regulations.

The commissioners expressed concern over the potential risks posed by these platforms, which have rapidly gained popularity in the US by offering inexpensive, made-in-China goods directly to consumers. They highlighted recent media reports that revealed the availability of products such as padded crib bumpers, which have been banned by Congress since 2022 due to their association with infant suffocation.

The commissioners stated, "We seek to better understand these firms, particularly their focus on low-value direct-to-consumer shipments and the enforcement challenges when firms with little or no US presence distribute consumer products through these platforms."

Shein, based in Singapore, and Temu, operated by China's PDD Group, have both leveraged the de minimis rule, which allows packages valued at $800 or less to be exempt from tariffs if sent directly to US shoppers. This loophole has contributed to the platforms' ability to offer low prices, but it has also raised questions about the quality and safety of the products being sold.

The commissioners urged the CPSC to investigate how these platforms manage their relationships with third-party sellers, many of whom operate with minimal oversight. They noted, "The commission must better understand what enforcement challenges exist with respect to foreign third-party sellers."

The investigation would aim to identify any gaps in the current regulatory framework that might leave US consumers vulnerable to unsafe products.

The call for action comes amid growing scrutiny of Shein and Temu from US lawmakers, who have criticised the platforms for their aggressive pricing strategies and the potential hazards posed by their products.

A bipartisan group of legislators has previously proposed eliminating the de minimis exemption, a move that could have significant implications for the business models of these and other e-commerce platforms.

As the CPSC sets its priorities for 2025, the commissioners emphasised the need for clear expectations regarding the responsibilities of these platforms in ensuring product safety. "We expect this review by commission staff will inform what further steps are needed to protect American consumers," they concluded.

Shein and Temu have not yet responded to these concerns.



Share Story:

Recent Stories


The Very Group
The Very Group transformed range and assortment planning using Board.

Watch the full video

Smarter merchandise planning across the retail value chain
In this webinar, Matt Hopkins, Head of Retail Solutions, Board, Catherine Tooke, SVP Product & Planning, Sweaty Betty, and Subir Gupta, Managing Principal, Thought Provoking Consulting join Retail Systems Editor Jonathan Easton to discuss the findings of the recent Retail Systems report The Merchandise Planning Challenge: How are retailers harnessing technology to optimise planning and retain customers? and examine the innovations that are improving retail planning.

Advertisement