US Regulators Call for Probe into Temu and Shein

Popular online retailers Temu and Shein are facing mounting scrutiny over the safety of products sold on their platforms. Two US Consumer Product Safety Commission (CPSC) commissioners are now urging a formal investigation into the companies, citing concerns over the alleged sale of dangerous items, including some posing risks to infants and toddlers.

As reported by CNBC, Commissioners Peter Feldman and Douglas Dziak issued a letter on Tuesday expressing their concerns and calling for a probe into Temu and Shein's safety practices. The commissioners specifically highlighted reports of the platforms offering products deemed unsafe for children, such as padded crib bumpers linked to suffocation risks.

These concerns were further fueled by a recent investigation by The Information, which revealed that Temu was selling banned crib bumpers while Shein offered children's hoodies with drawstrings, a known safety hazard.

Both companies have maintained that they prioritize customer safety and require sellers to comply with relevant laws and regulations. In statements to CNBC, Shein emphasized its investments in compliance programs and partnerships with testing agencies, while Temu pledged full cooperation with any CPSC investigation.

The calls for scrutiny come amidst Temu and Shein's meteoric rise in popularity, fueled by aggressive marketing campaigns and a constant stream of ultra-low-priced goods sourced from China. Both companies have attracted billions in investment and captured the attention of major players like Amazon, which recently launched its own discount storefront in response to the threat posed by the Chinese newcomers.

However, Temu and Shein's rapid growth has also drawn criticism for their reliance on a trade loophole known as the de minimis exemption, which allows packages valued under $800 to enter the US duty-free. Critics argue that this exemption, intended for small businesses, is being exploited by these e-commerce giants, giving them an unfair advantage while potentially undermining consumer safety.