WASHINGTON / LONDON (IT BOLTWISE) – Fast fashion companies Shein and Temu are under pressure in the US after senior politicians called for investigations. The focus is on allegations of forced labor and intellectual theft. These developments could have far-reaching consequences for the market.
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Fast fashion giants Shein and Temu are facing increasing pressure in the US after two senior politicians called for investigations. The allegations center on forced labor and the theft of intellectual property. In Texas, Attorney General Ken Paxton has launched an investigation into Shein that mirrors similar moves in several European countries. At the national level, Senator Tom Cotton has called for a federal investigation into Shein and Temu, which he described as “Communist Chinese” platforms and accused them of “devastating” US companies through intellectual theft.
Shein has stated that it takes the concerns raised seriously and welcomes constructive engagement with Attorney General Paxton. However, the company, which is headquartered in Singapore but whose goods are primarily made in China, has not directly commented on Cotton’s call for a national investigation. In a letter to U.S. Attorney General Pam Bondi, Cotton explained that millions of packages from China are sitting in U.S. warehouses after Washington changed its rules on low-cost shipments in August.
President Donald Trump had abolished the longstanding de minimis rule, a global tariff exemption that was widely used by buyers of low-cost goods. This change subjects shipments to tariffs and stricter customs controls. Cotton, a close Trump ally and a vocal critic of China, sees this as a “golden opportunity” for the Justice and Homeland Security departments to take action. Designers and small American brands have accused Shein of systematically copying their original creations and selling them at a fraction of the price.
Separately, Texas-based Paxton said numerous reports have raised serious concerns about Shein’s alleged reliance on forced labor and use of unsafe materials, as well as misleading advertising. The brand is also under scrutiny for the environmental impact of its fast fashion business and the working conditions of the people who make the products on its website. The Republican attorney said the investigation will examine whether Shein’s practices violate Texas law by allegedly using hazardous materials and misleading consumers about ethical sourcing.
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