Online retailers Shein and Temu are under mounting pressure in the United States as state and federal officials call for investigations into allegations of forced labour, hazardous materials and intellectual property theft.

On December 1, 2025, Texas Attorney General Ken Paxton announced he is investigating Shein’s business practices, citing reports of forced labour in its supply chain and the use of dangerous materials in clothing. The probe will also examine whether the fast-fashion giant misled consumers about ethical sourcing and review its data-collection practices.

“Safe, non-toxic materials and products are another key ingredient to the Make America Healthy Again movement. Any company that cuts corners on labour standards or product safety, especially those operating in foreign nations like China, will be held accountable,” Paxton said in a statement. “Texans deserve to know that the companies they buy from are ethical, safe, transparent and not exploiting workers or selling harmful products. I will not allow cheap, dangerous foreign goods to flood America and jeopardize our health.”

At the federal level, U.S. Senator Tom Cotton urged the Department of Justice and the Department of Homeland Security to investigate Shein and Temu for what he called “systematic intellectual property theft” and the sale of counterfeit goods.

In his letter on December 1, Cotton wrote: “These companies are engaged in industrial-scale IP theft and counterfeiting that is devastating American designers, brands and innovators.” He said recent test purchases found that “nearly half of the items were likely counterfeits, with Temu hosting particularly sophisticated and deceptive fakes while Shein continues to enable widespread copyright infringement of American designs.”

Cotton’s letter also noted that independent artists and small U.S. clothing brands report that Shein “systematically copies their original work, often within days of launch, and sells the knockoffs at a fraction of the price.”

Cotton’s letter follows an August policy change that ended the long-standing de minimis rule, which allowed low-cost imports under US$800 to enter the U.S. duty-free. The new regulations subject shipments to tariffs and stricter customs checks, which Cotton called a “golden opportunity” for enforcement.

Shein, headquartered in Singapore but with most of its manufacturing in China, said it takes concerns about its practices seriously and will cooperate with Paxton’s investigation. “We welcome constructive dialogue with Attorney General Paxton,” the company said in a statement. Temu did not immediately respond to a request for comment.

The scrutiny comes as Shein faces separate pressure in Europe. French authorities recently flagged listings for childlike sex dolls and weapons on Shein’s marketplace, prompting calls from the European Union for tighter controls.

Both companies have grown rapidly in recent years, offering ultra-cheap goods to consumers worldwide.

- Cathy Li