NEW YORK, Sept 4 (Reuters) - Two leaders of the U.S.
Consumer Products Safety Commission are calling for the agency
to investigate e-commerce retailers Shein and Temu after "deadly
baby and toddler products" were sold on both websites, according
to a letter posted on the agency's website on Tuesday.
CPSC Commissioners Peter Feldman and Douglas Dziak want the
agency to evaluate how Singapore's Shein, China's Temu and other
foreign-owned e-commerce platforms comply with its rules, handle
relationships with third-party sellers and represent imported
products.
Shein and PDD Group's Temu, which both ship cheap
merchandise into the U.S. from China, are raising "specific
concerns" for the Commission for their use of de minimis, a rule
exempting packages valued at $800 or less from tariffs if they
are sent directly to shoppers.
A Shein spokesperson said the company is investing millions
of dollars into strengthening its compliance programs. Earlier
this year, Shein announced it would pour $50 million into
compliance programs to ensure strict adherence to product safety
standards and local laws and regulations.
Temu will cooperate any U.S. CPSC investigation, a
company spokesperson said. The e-retailer requires all sellers
to comply with applicable laws and regulations, including those
related to product safety, the spokesperson said.
Critics of Shein and Temu attribute low prices and de
minimis to Shein and Temu's success in the U.S. Both companies
have also come under scrutiny for the quality of their products.
A bipartisan group of U.S. lawmakers last year planned to
introduce a bill to eliminate the de minimis rule, which is
widely used by e-commerce platforms, including third-party
sellers on Amazon.com ( AMZN ) and Walmart.com.