Chinese online marketplace Temu and fast-fashion retailer Shein will be held accountable for the distribution of unsafe and hazardous products on their platforms, as stated by the European Commission on Wednesday. This announcement is part of a broader initiative to address the influx of inexpensive e-commerce imports into the European Union.
Additionally, the EU executive indicated that it would facilitate a coordinated investigation by the Consumer Protection Cooperation (CPC) Network, involving national consumer authorities, into Shein due to concerns that the company may be violating EU consumer protection regulations.
These actions by the EU executive reflect a similar effort by the US government, which recently terminated a trade provision that allowed retailers such as Temu and Shein to send low-value packages to the United States without incurring duties.
The Commission expressed that its apprehensions were prompted by approximately 4.6 billion low-value items, each valued under 22 euros, that were imported into the EU in the previous year. This amounted to around 12 million parcels daily, with 91 percent originating from China. This figure represented a twofold increase compared to 2023.
The statement indicated that low-cost imports create an inequitable competitive landscape for EU vendors who adhere to regulations, while the substantial volume of shipped packages adversely affects the environment and climate.
EU technology chief Henna Virkkunnen expressed in a statement, “Our goal is to foster a competitive e-commerce sector that prioritizes consumer safety, provides convenient products, and demonstrates environmental responsibility.”
Shein announced its intention to collaborate with consumer agencies and the Commission.
A spokesperson stated, “We align with the CPC Network’s objective of providing European consumers with a secure online shopping experience, and we plan to work in close partnership with the CPC Network and the Commission to resolve any issues.”
Temu has not yet provided a response to the request for comment.