Fast fashion giants Shein and Temu are facing mounting pressure in the United States as two top politicians demand investigations following allegations of forced labor and intellectual property theft. In Texas, Attorney General Ken Paxton has launched an investigation into Shein, following similar initiatives taken against the company in several European countries. At the national level, Senator Tom Cotton has called for a federal investigation into the Shein and Temu platforms, characterizing them as “communist Chinese” and accusing them of intellectual property violations that have “destroyed” American businesses.
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Shein says it takes concerns seriously
Shein stated that it takes concerns about its business practices seriously. The BBC also contacted Temu for comments. “We welcome constructive cooperation with Attorney General Paxton,” Shein said, adding that it would cooperate in the investigation.
The retailer is headquartered in Singapore, but most products sold through its platform are manufactured in China, where the company was founded. In a letter addressed Monday to US Attorney General Pam Bondi, Senator Cotton – a leading Republican from Arkansas – emphasized that millions of packages from China now remain in US warehouses following Washington’s change to low-cost shipping rules in August.
New regulations and customs controls
It should be noted that US President Donald Trump abolished the long-standing de minimis rule, a global tariff exemption widely used by buyers of low-cost products, subjecting shipments to tariffs and stricter customs controls. The new regulations give the Department of Justice and Homeland Security a “golden opportunity” to take action, said Cotton, a key Trump ally and fierce critic of China.
Allegations of counterfeit products and misleading marketing
Designers and small American brands have accused Shein of systematically copying their original creations, often just days after their release, and selling them at a fraction of the price, he said. Cotton also accused Temu of featuring “sophisticated and misleading counterfeit elements” on its platform, which has hundreds of millions of users.
He even cited an American study that found that a significant percentage of items purchased by researchers from Shein and Temu were likely counterfeit. Meanwhile, Texas’s Paxton stated that numerous reports raise serious concerns about Shein’s alleged dependence on forced labor and claims of using unsafe materials and misleading marketing.
Temu also under investigation in France
The brand has come under scrutiny due to the environmental impact of its fast fashion business and the working conditions of people manufacturing products in its facilities. The Republican attorney said the investigation will assess whether Shein’s practices violate Texas law, allegedly use dangerous materials, and whether they have misled consumers about ethical sourcing. The investigation will also examine Shein’s data collection practices, he added.
“I will not allow cheap, dangerous, foreign goods to flood America and endanger our health,” Paxton declared. Shein also faces calls from the European Union to restrict sales of children’s sex dolls and weapons on the third-party market after French authorities recorded the products in November. Temu is also under investigation in France for spreading harmful content accessible to young people.
