Chinese retail company ‘Temu’ has come under scrutiny by US Senator Rick Scott (R-FL), who is alleging the former should be federally investigated for potentially unfair trade practices.
Temu, owned by Chinese company PDD Holdings, is an online marketplace for cheap goods ranging from clothes to cutlery.
Senator Scott sent a letter to President Joe Biden’s administration requesting Temu be investigated over product safety, labor practices, unfair competition, data privacy, and counterfeit goods concerns.
According to Scott, Temu products “are not subject to the
rigorous safety tests and inspections that other competitor products made elsewhere around the world undergo.”
Moreover, Temu’s Chinese ownership, said Scott, is grounds for inquiring upon how Temu manipulates American users’ data and if it is being delivered to the Chinese Communist Party (CCP).
Furthermore, Scott justified his investigation request to ensure Temu products are not produced using forced labor, as some Chinese companies have been previously accused of.
Temu came under fire earlier this month following a row with vendors unhappy about the former’s new return policies.
According to the Floridian’s Jackson Bakich, Temu began imposing penalties for returns that can amount to five times the sale value, possibly crippling its vendors.
Senator Marco Rubio (R-FL) used the conflict to expose what he believes are Temu’s unethical business practices.
“Private firms and journalists have unearthed compelling evidence that both Shein and Temu are facilitating the entry of goods made with Uyghur forced labor,” said Sen. Rubio.
SHEIN, a Chinese fast fashion company, has experienced severe criticism following reports it relies on forced labor to lower prices.
SHEIN had previously attempted to enter the US stock market through an initial public offering (IPO) but defected after US regulators requested it publicize its IPO application.
