The U.S. government is deliberating the inclusion of Chinese e-commerce platforms Shein and Temu on the Department of Homeland Security’s “forced labor” list. The idea comes amid concerns about potential labor rights breaches in their supply chains. While no final verdict has been made, both corporations have categorically denied any involvement in forced labour abuses.
Shein emphasized its adherence to the U.S. Uyghur Forced Labor Prevention Act (UFLPA), stating, “We are in full compliance with the UFLPA.” Similarly, Temu asserted its commitment to ethical labor standards, noting, “Temu strictly prohibits the use of forced labor and enforces our Third-Party Code of Conduct, which bars all forms of involuntary labor.”
The European Commission declared that Shein and Temu will be responsible for the distribution of unsafe and non-compliant products in the European Union market. The initiative forms part of an extensive approach to manage the rapid growth of affordable e-commerce imports that threaten consumer protection and environmental criteria. In 2024, the EU received 4.6 billion low-value items mainly coming from China after a two-fold increase from the previous year.
The Commission warned about imports which create unfair competition against compliant companies while reducing environmental sustainability. Henna Virkkunen, the EU’s tech chief, stated, “We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment.”
As part of its enforcement actions, the EU will coordinate a joint investigation by the Consumer Protection Cooperation (CPC) Network into Shein’s practices, suspecting potential infringements of EU consumer protection laws. Shein has expressed its intention to cooperate with European authorities, stating, “We share the CPC Network’s goal of ensuring European consumers can shop online with peace of mind, and we intend to work closely with the CPC Network and the Commission to address any concerns.”
The outcomes of these investigations and policy considerations could significantly impact the global e-commerce landscape, influencing regulatory frameworks and operational protocols for cross-border online retailers.
