ALLEGATIONS OF IP VIOLATIONS, FORCED LABOR AND UNFAIR MARKET ADVANTAGES SPARK WASHINGTON RESPONSE
Shein and Temu are facing increasing bipartisan pressure for a federal investigation following allegations of U.S. design theft and unethical labor practices.
Chinese fast-fashion giants Shein and Temu are under intensifying scrutiny in Washington as lawmakers from both parties push for a federal investigation into allegations that the companies have stolen U.S. designs and relied on unethical labor practices to maintain ultra-low prices. The calls follow months of rising concern over supply-chain transparency and the explosive growth of both platforms in the American retail market.
Lawmakers cite allegations from independent designers claiming Shein and Temu lifted their original artwork and apparel concepts without permission. Both companies have denied wrongdoing, though dozens of creators have filed DMCA takedowns or lawsuits alleging intellectual-property violations.
Even more serious are allegations linked to forced-labor risks within certain Chinese supply chains. Advocacy groups and watchdog organizations argue that both companies’ rapid production cycles and extremely low costs raise red flags about labor conditions. Shein says it has “zero tolerance for forced labor”; Temu says it requires suppliers to follow “strict compliance guidelines.”
The bipartisan pressure reflects growing frustration in Congress over foreign fast-fashion platforms using loopholes in the U.S. de minimis import rule, which allows shipments under $800 to enter the country duty-free. Lawmakers say Temu and Shein exploit this system to avoid tariffs and regulatory oversight, creating what critics call an “unfair advantage” over domestic retailers.
Industry analysts note that consumer demand for low-cost fast fashion remains strong, but political pressure is catching up quickly. A federal investigation could have broad implications for trade policy, import rules, and supply-chain compliance.
Both companies continue to expand in the U.S. market despite mounting scrutiny. Congress is expected to pursue hearings or additional oversight measures in the coming months.
