Tue, 02 Dec 2025
Two senior US politicians accuse the platforms of malpractice, including intellectual property theft.
Shein and Temu under investigation in US
* Texas Attorney General Ken Paxton launched an investigation into Shein, focusing on allegations of forced labor, use of hazardous materials, and deceptive marketing practices.
* Senator Tom Cotton called for a federal investigation into Shein and Temu over claims of intellectual property theft.
* Both companies have been accused of copying original designs from American designers and selling them at low prices.
* A US investigation found that a significant proportion of items bought on Shein and Temu were likely counterfeits.
* Cotton labeled both platforms as "Communist Chinese" and accused them of exploiting America's lax customs rules.
* Shein welcomed the investigation and promised to cooperate, while Temu did not respond for comment.
Background
* US President Donald Trump abolished a global tariff exemption in August, allowing customs checks on low-cost shipments from China.
* Cotton argued that this change gives law enforcement agencies an opportunity to take action against companies like Shein and Temu.
* The investigation is separate from another probe into Roblox, which Paxton launched in November over safety concerns.
>>
Terms of Use | Privacy Policy | Manage Cookies+ | Ad Choices | Accessibility & CC | About | Newsletters | Transcripts
Business News Top © 2024-2025