The Consumer Product Safety Commission is calling on its staff to determine if / how foreign-owned firms that rely on overseas suppliers meet their obligations under the Consumer Product Safety Act.
CPSC Commissioners Peter A. Feldman and Douglas Dziak asked staff to specifically evaluate Shein and Temu to determine whether the platforms comply with the law. In a statement, the commissioners said:
- To the extent a platform falls outside the Commission’s reach, policymakers must understand where gaps exist and how best to address them. Likewise, the Commission must better understand what enforcement challenges exist with respect to foreign third-party sellers. Where agency compliance staff discover safety violations, we expect CPSC to initiate enforcement actions.
- We are aware of recent media reports that deadly baby and toddler products are easy to find on these platforms.
- 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.”
- We seek to better understand these firms, particularly their focus on low-value direct-to-consumer – sometimes called de minimis – shipments and the enforcement challenges when firms with little or no U.S. presence distribute consumer products through these platforms.
A Shein spokesperson said the company is investing millions of dollars ($50M to be exact) into strengthening its compliance programs to ensure strict adherence to product safety standards and local laws and regulations.
A Temu spokesperson said, “Temu requires all sellers on our platform to comply with applicable laws and regulations, including those related to product safety. Our interests are aligned with the CPSC in ensuring consumer protection and product safety, and we will cooperate fully with any investigation.”