Key Points
- CPSC Commissioners Peter Feldman and Douglas Dziak are calling for an investigation into Shein and Temu over selling unsafe baby and toddler products.
- The focus is on how these platforms comply with U.S. safety standards, manage third-party sellers, and represent imported goods.
- Shein and Temu use the de minimis rule to ship low-cost goods directly to U.S. consumers without tariffs, raising concerns about product safety and regulatory compliance.
- U.S. lawmakers are considering eliminating the de minimis exemption to ensure better regulation of imported goods sold by foreign e-commerce platforms.
Two leaders of the U.S. Consumer Product Safety Commission (CPSC) are urging the agency to investigate popular e-commerce platforms Shein and Temu following the sale of hazardous baby and toddler products on both websites. In a letter posted on the CPSC’s website on Tuesday, Commissioners Peter Feldman and Douglas Dziak called for a thorough evaluation of how these foreign-owned platforms, including Singapore-based Shein and China’s Temu, comply with CPSC regulations, manage relationships with third-party sellers and represent imported goods.
Shein and PDD Group’s Temu, known for shipping low-cost merchandise from China to the U.S., have raised specific concerns for the Commission regarding their use of the de minimis rule. This rule exempts packages valued at $800 or less from tariffs if shipped directly to consumers, which critics argue contributes to the companies’ rapid growth in the U.S. market. This exemption allows these platforms to offer products at lower prices, potentially bypassing some regulatory scrutiny that domestic sellers face.
The CPSC Commissioners emphasized the need to scrutinize how Shein, Temu, and other similar e-commerce platforms adhere to U.S. safety standards, particularly regarding their product listings by third-party sellers. Concerns have been mounting over the quality and safety of products sold by these platforms, with allegations that some items do not meet U.S. safety standards, posing risks to consumers, especially vulnerable populations like infants and toddlers.
In response to these concerns, a bipartisan group of U.S. lawmakers has been considering legislative action to address the de minimis exemption. Last year, they proposed a bill to eliminate the exemption, which is used by foreign platforms like Shein and Temu and third-party sellers on major U.S. platforms such as Amazon.com and Walmart.com.
The push for a CPSC investigation reflects broader worries about the safety of imported online products. It highlights the challenges of regulating international e-commerce giants outside traditional retail models. As scrutiny increases, the outcomes of any CPSC investigation or legislative changes could significantly impact how these companies conduct business in the U.S.
