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August 10, 2026
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Fast-Fashion Giants Shein, Temu Face Intensified US Scrutiny Over Labor, IP Theft Allegations

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Fast-fashion titans Shein and Temu are confronting mounting pressure in the United States as senior political figures push for comprehensive investigations into their business practices. Allegations range from the use of forced labor to widespread intellectual property theft.

Texas Attorney General Ken Paxton has initiated a probe into Shein, mirroring similar actions taken against the company in several European nations. Simultaneously, Senator Tom Cotton has called for a federal investigation into both Shein and Temu, describing them as “Communist Chinese” platforms and asserting that their alleged intellectual property theft has “devastated” American businesses.

Millenium TV has learned that Shein has expressed its commitment to cooperating with the Texas investigation, stating it “welcomes constructive engagement” with Attorney General Paxton and takes concerns regarding its operations seriously. The company, founded in China and headquartered in Singapore, predominantly manufactures its goods in China.

In a communication to US Attorney General Pam Bondi, Senator Cotton highlighted that millions of packages from China are now accumulating in US warehouses. This situation follows the August abolition of the longstanding de minimis rule by then-President Donald Trump, which had previously exempted low-cost shipments from global tariffs. This policy change now subjects such shipments to levies and more rigorous customs checks, an opportunity Cotton, a strong critic of China, believes the Department of Justice and Homeland Security should leverage.

Designers and smaller American brands have consistently accused Shein of systematically replicating their original creations, often shortly after their release, and selling them at considerably lower prices, according to Senator Cotton. He also asserted that Temu carries “sophisticated and deceptive fakes” on its platform, which boasts hundreds of millions of users. Cotton cited a US investigation that reportedly found a significant portion of items purchased from Shein and Temu were likely counterfeit.

Separately, Attorney General Paxton has noted numerous reports raising serious concerns about Shein’s alleged reliance on forced labor, the use of unsafe materials, and deceptive marketing tactics. The brand has faced scrutiny over the environmental impact of its fast-fashion model and the working conditions of its product manufacturers. Paxton stated the Texas investigation would determine if Shein’s practices violate state law concerning hazardous materials and if the company has misled consumers about ethical sourcing. Data collection practices will also be examined.

“Millenium TV will not allow cheap, dangerous, foreign goods to flood America and jeopardise our health,” Paxton declared online. Beyond the US, Shein faces calls from the European Union to regulate sales of childlike sex dolls and weapons on its third-party marketplace, following flags raised by French authorities. Temu is also under investigation in France regarding the spread of harmful content accessible to young individuals.

© Millenium TV

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