Two commissioners at the U.S. Consumer Product Safety Commission (CPSC) have called for an investigation into the operations of foreign-owned ecommerce sites, with Shein and Temu named specifically.
Commissioners Peter Feldman and Douglas Dziak said in a statement that they are tasking CPSC staff with investigating “the companies’ safety and compliance controls; relationships with third-party sellers and consumers; and any representations they make when products are imported” to determine if they are meeting their obligations under the Consumer Product Safety Act.
The increased scrutiny from CPSC follows reports that both Shein and Temu currently sell potentially dangerous items such as crib bumpers, which have been illegal to sell in the U.S. since 2022, and drawstring hoodies in toddler and kids’ sizes, which can be a choking hazard.
“Third-party sellers, domestic and foreign, are proliferating on online platforms,” said Feldman and Dziak in their statement. “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.”
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The CPSC has been trying to get ecommerce marketplaces to take more responsibility for the products sold on their sites, despite the platforms’ claims that they merely serve as a connecting point between buyers and sellers. In July, CPSC issued a directive stating that Amazon is responsible for the sale of hazardous products on its platform, even those listed by third-party sellers.
This latest investigation marks another blow for Shein and Temu, which, despite finding favor with cash-strapped consumers, have faced continued backlash from legislators, regulators and competitors over their ties to China and opaque business practices.
The platforms were the subject of a House Select Committee investigation into “the threat posed by the Chinese Communist Party (CCP)” last year. Additionally, the companies’ exploitation of the “de minimis” import provision, which waives import tariffs for shipments valued under $800, has caused several members of Congress to cry foul. The provision is a “a huge loophole that particularly enables these two companies to send a gusher of product to the U.S and undercut American businesses that are literally being driven out of business by this competition,” Congressman Earl Blumenauer (D., Ore.) told Time.
