Cross-border e-commerce is facing stricter scrutiny after the U.S. revoked tariff exemptions for small packages under $800 at the end of August. On Monday (December 1), Republican Senator Tom Cotton of Arkansas, chairman of the Senate Intelligence Committee, sent a letter to Attorney General Pam Bondi requesting an investigation into Chinese fast-fashion e-commerce companies Shein and Temu, accusing the two companies of large-scale intellectual property infringement and the sale of counterfeit goods.
Comprehensive media reportsIn a letter to Bondi on the 1st, Cotton pointed out that "these companies now have large inventories in warehouses and distribution centers in the United States, and the goods can no longer be quietly brought into the country through the ports," and emphasized that since the goods are now under the jurisdiction of the United States, an investigation should be launched.
In fact, both companies have been repeatedly accused of infringing intellectual property rights and selling counterfeit goods in the past. In July of this year, the European Commission also pointed out that Temu had failed to adequately prevent the sale of counterfeit goods, violating EU regulations. At that time, Temu stated that it would fully cooperate with the investigation.
It is understood that Shein, headquartered in Singapore, was originally a cross-border wedding dress platform founded in Nanjing, China in 2008; Temu, on the other hand, belongs to the parent company of the Chinese e-commerce platform Pinduoduo.
Texas Attorney General Ken Paxton stated that he is investigating whether Shein violated local laws prohibiting unethical labor and the sale of unsafe goods. France also last week requested a Paris judge to order Shein to suspend operations in the country for three months, citing reasons including the sale of sex dolls shaped like young girls and prohibited weapons such as brass knuckles.
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Shein emphasized that it has required suppliers to prove that the products do not infringe on intellectual property rights and are not counterfeit, and that a dedicated team has been set up to monitor sellers, and any violations will be dealt with immediately.
