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US safety commissioners call for investigation into Shein, Temu
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US safety commissioners call for investigation into Shein, Temu
Sep 6, 2024 12:19 PM

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.

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