U.S. Consumer Product Safety Commission Investigates Shein and Temu

U.S. Consumer Product Safety Commission Investigates Shein and Temu

In a joint statement released today, U.S. Consumer Product Safety Commission (CPSC) Commissioners Peter A. Feldman and Douglas Dziak have called for a thorough evaluation of e-commerce platforms Shein, Temu, and other similar companies. This investigation aims to determine how these foreign-owned platforms, which rely heavily on overseas suppliers, meet their obligations under the Consumer Product Safety Act.

The CPSC is tasked with protecting consumers from products that pose an unreasonable risk of injury, and this investigation seeks to inform the Commission about the legal status and operational practices of these platforms. Commissioners Feldman and Dziak emphasized the need for a comprehensive understanding of the enforcement challenges posed by foreign third-party sellers and the potential safety violations that could arise when these sellers operate outside the Commission's jurisdiction.

Concerns Over Foreign-Owned E-Commerce Platforms

Shein and Temu, in particular, have raised significant concerns for the CPSC. According to recent reports, these platforms have made it easy to find deadly baby and toddler products, raising alarms about the safety of items being sold. Media outlets have also highlighted that thousands of Chinese factories and vendors have joined the supply chain for Shein and Temu, offering a wide array of inexpensive made-in-China goods, from apparel to electronics and kitchen items​

The commissioners noted that these platforms often engage in low-value direct-to-consumer, or de minimis, shipments, which pose unique enforcement challenges. Given the rapid growth and popularity of these platforms in the U.S., there is a pressing need to understand their compliance controls, relationships with third-party sellers, and the representations made when products are imported.

Next Steps and Expectations

As the CPSC sets its priorities for the upcoming year, Commissioners Feldman and Dziak expect agency staff to delve into the safety and compliance measures employed by Shein, Temu, and other similar platforms. This includes evaluating their interactions with third-party sellers, both domestic and foreign, and assessing the companies' responsibilities to ensure consumer safety.

The investigation aims to identify gaps in the current regulatory framework and determine the necessary steps to protect American consumers. If the Commission's compliance staff finds evidence of safety violations, enforcement actions are expected to follow.

The joint statement emphasizes that while online commerce can offer significant benefits to consumers and sellers, it is crucial for platforms to adhere to safety standards. The findings of this evaluation will help guide future regulatory and enforcement actions to ensure that consumer protection remains a top priority.

The views expressed in the statement reflect those of Commissioners Feldman and Dziak and do not necessarily represent the stance of the entire Commission

Read the statement HERE