Lawmakers and consumer advocates are calling for a federal investigation into online Chinese retailers Temu and Shein.
FILE - A page from the Shein website is shown in this photo, in New York, Friday, June 23, 2023. The companies have spent billions of dollars in online American advertising with social media companies such as Meta, parent of Facebook and Instagram, and Google. The probe is warranted, critics say, because of anti-competitive practices skirting U.S. trade and– are accused of offering direct-to-consumer products that often don't meet U.S. safety standards at costs well below market value.
Robert Bork Jr., president of the Antitrust Education Project, a consumer rights advocacy group, said the Chinese retailers are stealing market share from legitimate companies who don't use slave labor and follow safety regulations. He said they should be stopped. Shein moved its headquarters to Singapore in an attempt to distance itself from China, the New York Times reported in 2023.
By shipping directly to consumers, the companies avoid normal customs processes, allowing them to skip paying import taxes and regulatory safety checks.
Temu Forced Labor Federal Investigation Safety Standards Slave Labor Online Advertising U.S. Trade Regulations
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