WORLD NEWS
According to a report by Semafor, the US Department of Homeland Security (DHS) is considering placing Shein and Temu on its "forced labour" list. The potential decision would be part of ongoing efforts by the Trump administration to ensure compliance with the Uyghur Forced Labour Prevention Act (UFLPA).
Both companies have denied any involvement in forced labour.
- Shein Statement: "We are in full compliance with the US UFLPA," the company said in an emailed response to Reuters.
- Temu Response: "We strictly prohibit the use of forced labour," the company reiterated, citing its robust third-party code of conduct.
EU Crackdown on Unsafe Imports
In a parallel development, the European Commission announced that Shein and Temu will be held accountable for the sale of unsafe and dangerous products on their platforms. The move is part of a broader crackdown on low-cost e-commerce imports.
Henna Virkkunnen, the EU tech chief, highlighted the environmental and competitive challenges posed by a surge in cheap imports from China:
"We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment."
The Commission revealed that 91% of the 4.6 billion low-value items imported into the EU last year came from China.
Consumer Protection Investigation
The European Consumer Protection Cooperation (CPC) Network will launch a joint investigation into Shein over potential violations of EU consumer protection rules.
Response from Shein and Temu
Shein expressed its willingness to cooperate with European authorities:
"We share the CPC Network’s goal of ensuring European consumers can shop online with peace of mind."
The developments come amid rising trade tensions between China and the US. China recently imposed targeted tariffs on American imports, including potential sanctions on companies like Google, in response to President Trump's levies.