December 4, 2025

Shein, Temu face US investigations for counterfeits

shein, temu face us investigations for counterfeits
Photo source: X.com

U.S. lawmakers are ramping up demands for probes into fast-fashion e-commerce leaders Shein and Temu, spotlighting accusations of rampant intellectual property (IP) theft, counterfeiting, forced labour, and hazardous products from their China-dominated supply chains.

Arkansas Senator Tom Cotton, a staunch Trump supporter and vocal China opponent, wrote to Attorney General Pam Bondi on December 1, pressing the Department of Justice and Homeland Security to inspect warehouses stocked with millions of these low-value imports, now vulnerable after President Donald Trump axed the de minimis exemption in August 2025, imposing tariffs and customs checks.

On the same day, Texas Attorney General Ken Paxton, another Trump ally, announced a state investigation into Shein for potential breaches involving unethical labour, dangerous materials, misleading ethical claims, and data practices.​

Cotton decried the platforms—branded by him as “Communist Chinese”—for “industrial-scale IP theft and counterfeiting that is devastating American designers, brands and innovators,” citing cases where Shein replicates U.S. independents’ designs days after launch at slash prices, while Temu hawks “sophisticated and deceptive fakes” to its hundreds of millions of shoppers.

A U.S. study backed his claims, finding many test-bought items from both sites likely counterfeit. Shein, founded in China but headquartered in Singapore with most goods made there, vowed cooperation with Paxton’s probe and “constructive engagement,” adding: “We are constantly improving our internal processes to better protect creators”. Temu stayed silent on the U.S. actions.​

The scrutiny ties into prior red flags, like U.S. Consumer Product Safety Commission calls in 2024 for inquiries over deadly infant products on both sites, and Temu’s shift away from direct China-U.S. shipments earlier that year.

Shein’s model faces flak for environmental damage and grim factory conditions, while Paxton targets broader threats: “I will not allow cheap, dangerous, foreign goods to flood America and jeopardise our health.”

In a twist, Shein sued Temu in 2024 over copyright infringement, trade secrets, and fraud—alleging Temu copies its hits and sells at a loss—though a U.S. judge narrowed the case in October 2025.​

Internationally, France sought a three-month Shein suspension last week over childlike sex dolls and banned weapons, with Temu probed there for youth-harmful content.

Subscribe for weekly news

Subscribe For Weekly News

* indicates required