Francesca Biagioli In the United States, Shein and Temu have come under investigation by the Consumer Product Safety Commission (CPSC) for potential violations of child product safety regulations
Both Shein and Temu are Chinese giants of fast fashion highly exposed in the very hot spotlight of CPSC, a U.S. government agency tasked with safety for most products on the market.
The Commissioners of the CPSC, Peter A. Feldman and Douglas Dziak, called for an appraisal of the platforms Shein, Temu, and any other similar firms in the said statement to establish whether or not such businesses that deal with foreign suppliers observe U.S. legislation.
The Commission is taking this step due to growing concern regarding the safety of products sold through these platforms because a number of kids’ products do not get tested for harmful ingredients or hazardous setups.
Recent reports have identified hooded sweatshirts with drawstrings that can cause strangulation and sleeper pajamas that do not meet U.S. standards for flammability among Shein and Temu products sold for infants and young children.
But let’s not also forget to mention that such concerns have already been remarked on in Europe. Several tests there have pointed out hazardous-risk associated with buying children’s products on these platforms.
The Commissioners also reiterated that should investigations confirm violations, enforcement actions may be issued against these platforms in the form of fines, penalties, and in extreme cases, cease sale orders.
Challenges in regulating e-commerce platforms
It thus focuses on attaining an understanding of the operations of these e-commerce websites, which often use inexpensive direct shipment-a process also known as “de minimis”-and may not necessarily use some presence in the United States. The lack of direct control in such scenarios limits the monitoring of product safety and regulation enforcement.
Shein and Temu have grown very fast in the U.S. and worldwide, thanks to the competitive prices of the products they are selling. Yet, this has raised several questions regarding how this could be so cheap. What the investigation by the CPSC is trying to detail is whether those economies rely on cuts in the safety of the products sold, aside from labor exploitation not contemplated within the investigation in the U.S.
The commissioners asked that CPSC staff review the companies’ checks for safety and compliance, relationships with third-party sellers and the declarations upon importation of a product.
The results of the investigation could go well beyond the simple determination of some violations and may affect the future of Chinese e-commerce platforms operating in the United States. In the case of confirmation of serious violations, new regulations and more stringent controls would be enacted in protection of consumers, especially regarding the most sensitive category, such as babies and toddlers.
Another important aspect is that the U.S. judgment might spill over to consumer confidence in products bought online, being more concerned with the quality and safety of the goods they would choose on digital platforms. About time, though!
Reactions from Shein and Temu
Following the announcement of the U.S. review, Shein stated that customer safety was of “utmost importance” and the firm is investing millions into hardening its compliance programs.
For its part, Temu has said it will cooperate with the CPSC investigations and that it complies with all the safety standards required in the United States.
