Consumers have been flocking to Shein and Temu for discount goods, ranging from clothes to homeware to school supplies and more.
However, both discount retailers are currently under investigation by the U.S. Consumer Product Safety Commission (CPSC). The agency is primarily concerned with how these companies are able to fulfill their promise of delivering goods to consumers at lower costs, while also abiding by the Consumer Product Safety Act.
“As the Commission sets its priorities for next year, we expect agency staff to investigate the companies’ safety and compliance controls; relationships with third-party sellers and consumers; and any representations they make when products are imported,” the CPSC wrote in a statement.
Should consumers be worried?
In the CPSC’s joint statement by Commissioners Peter A. Feldman and Douglas Dziak, the pair explain that both Shein and Temu have raised eyebrows about the safety of certain products – specifically baby products.
“We are aware of recent media reports that deadly baby and toddler products are easy to find on these platforms,” they explained. “We are also aware of reporting that ‘thousands of Chinese factories and vendors have joined the supply chain for Shein and Temu, whose popularity has exploded in the U.S. with their offers of inexpensive made-in-China goods, from t-shirts and handbags to electronics and kitchen items.’”
The Commissioners are referring to a recent report that was released from The Information, that highlighted the various dangerous baby products that both Shein and Temu have on their sites. Crib bumpers that have previously been banned by Congress, as well as drawstring hoodies, both of which pose choking/strangling risks, are available for sale on the sites.
In addition, both companies seem to be skirting a rule in the U.S. known as “de minimis.” Under this rule, any package under $800 that is shipped directly to consumers doesn’t need to pay tariffs.
While this ultimately saves both the seller and the customer money, the CSPC’s primary goal with this investigation is to ensure that consumer safety remains the top priority for these retailers.
“Third-party sellers, domestic and foreign, are proliferating on online platforms,” the Commissioners wrote. “This form of commerce can benefit consumers and sellers in many ways, but CPSC must make clear its expectations regarding these platforms’ responsibilities to ensure safety. We expect this review by Commission staff will inform what further steps are needed to protect American consumers.”