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US Lawmakers Launch Probes Into Shein and Temu Over Forced Labor and IP Theft Claims
Shein and Temu, two of the world's largest online retailers, are facing mounting legal and political pressure in the United States, with Texas Attorney General Ken Paxton and Arkansas Senator Tom Cotton pushing for investigations into allegations of forced labor, intellectual property theft, and consumer safety violations.
Texas Opens Forced Labor and Safety Probe
Paxton announced on Monday that Texas had launched an investigation into Shein, focusing on claims of forced labor in its supply chain, the use of unsafe materials in products, and deceptive marketing practices. The probe will assess whether the company violated state laws by allegedly selling hazardous goods and misleading consumers about ethical sourcing.
In a public statement, Paxton declared, "I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health." The investigation will also scrutinize Shein's data collection practices, adding another layer to the company's growing regulatory challenges.
Federal Call for IP Theft Investigation
Meanwhile, Senator Tom Cotton-a senior Republican and ally of former President Donald Trump-urged US Attorney General Pam Bondi to initiate a federal probe into both Shein and Temu. In a letter sent Monday, Cotton accused the platforms of being "Communist Chinese" entities engaged in systematic intellectual property theft and the sale of counterfeit goods.
Cotton highlighted a recent US investigation that found a significant proportion of items purchased from Shein and Temu were likely fakes. He also pointed to longstanding complaints from American designers and small brands, who allege Shein copies their designs within days and undercuts prices. Temu, he claimed, hosts "sophisticated and deceptive fakes" on its platform, which boasts hundreds of millions of users.
Regulatory Shifts Amplify Scrutiny
The intensified scrutiny follows a August policy change by the Trump administration, which abolished the de minimis rule-a tariff exemption for low-cost shipments. The move subjected millions of packages from China to new levies and stricter customs checks, providing what Cotton called a "golden opportunity" for the Department of Justice and Homeland Security to crack down on illicit imports.
Shein, headquartered in Singapore but with deep roots in China, responded to the probes with a statement:
The company did not directly address Cotton's call for a federal probe but stated it takes concerns about its business practices "seriously." Temu has not yet responded to requests for comment."We welcome constructive engagement with Attorney General Paxton and will cooperate with the investigation."
Global Regulatory Pressures Mount
The US actions come amid broader international scrutiny. In November, French authorities flagged Shein for selling childlike sex dolls and weapons on its third-party marketplace, prompting calls from the European Union for stricter controls. Temu is also under investigation in France over harmful content accessible to young people.
Shein's fast-fashion model has faced repeated criticism over its environmental impact and working conditions in factories supplying its platform. Paxton's probe marks the latest in a series of legal challenges for the retailer, which has also been targeted by consumer protection groups and labor rights advocates.
Broader Crackdown on Tech Platforms
Paxton's focus on Shein aligns with his wider campaign against tech platforms. In November, he sued Roblox, accusing the gaming company of "flagrantly ignoring" child safety laws and deceiving parents about risks to young users. Roblox denied the allegations, calling them "misrepresentations" of its platform.
As regulatory pressures escalate, both Shein and Temu face potential legal and operational hurdles in the US, their largest market. The outcomes of these investigations could reshape the landscape for cross-border e-commerce and fast fashion.
