U.S. regulators want to investigate Shein and Temu over 'deadly' baby products

Why is Temu so popular, and is it here to stay? Washington Post tech reporter Shira Ovide explains why Temu's prices are so low and how it's become so popular in less than two years.

NEW YORK — Shein and Temu, two Chinese low-cost e-commerce websites, are the target of a proposed investigation by the United States government for selling "deadly baby and toddler products."

Two leaders from the Consumer Products Safety Commission said in an open letter Wednesday that they want commission staff to look into how the two companies comply with US safety regulations.

Pointing to "recent media reports" that dangerous products sold for kids are easy to find on the websites, CPSC commissioners Peter Feldman and Douglas Dziak said they want to "better understand these firms, particularly their focus on low-value direct-to-consumer" shipments

One particular concern for the Commission is the companies' use of "de minmis," a rule that exempts shipments valued at $800 or less from tariffs. Much of the products sold on Shein and Temu are cheap and range from furniture to fast fashion.

"As the Commission sets its priorities for next year, we expect agency staff to investigate the companies' safety and compliance controls; relationships with third-party sellers and consumers; and any representations they make when products are imported," Feldman and Dziak wrote.

Shein said in a comment to CNN that customer safety is its "top priority and we are investing millions of dollars to strengthen our compliance programs." Temu said that it "requires all sellers on our platform to comply with applicable laws and regulations, including those related to product safety."

As the two companies grow in popularity, especially in the U.S., they're also facing scrutiny and questions over a litany of issues, including how they're able to sell goods at such strikingly low prices, how transparent they are with the public and how much environmental waste their businesses generate.

Last year, a U.S. congressional commission called out Shein and Temu in a report that suggested the companies and others in China were potentially linked to the use of forced labour, exploitation of trade loopholes, product safety hazards or intellectual property theft.