Sen. Rick Scott (R-Fla.) is urging the Commerce Department to investigate the business practices of Chinese online retailer Temu. In a letter to Commerce Secretary Gina Raimondo, Scott expressed concerns about product safety, labor practices, unfair competition, data privacy, and counterfeit goods associated with the company.
Scott emphasized the need to address these issues promptly to protect the economic interests of the United States. Temu, owned by Chinese e-commerce giant PDD Holdings, has rapidly grown since its launch in the United States in September 2022. Marketplace Pulse estimated that over 100,000 China-based sellers were operating on the platform.
The senator outlined five areas of concern regarding Temu. He highlighted the lack of rigorous safety tests and inspections for products sold on the platform, raising worries about potential safety risks for consumers. Reports have also surfaced regarding the presence of toxic substances on women’s accessories sold on Temu and other Chinese online platforms.
Scott also expressed concerns about labor abuses and human rights violations associated with the production of products for Temu. He cited a report from the House Select Committee on the Chinese Communist Party (CCP) that warned consumers about the high risk of forced labor within Temu’s supply chains. The Uyghur Forced Labor Prevention Act (UFLPA) prohibits imports from China’s Xinjiang region unless companies can prove products weren’t produced with forced labor.
The senator questioned how Temu is able to offer products at lower prices compared to U.S. retailers, suggesting potential unfair trade practices or exploitation of loopholes in import regulations. Scott and Sen. Sherrod Brown (D-Ohio) previously called for an end to the “de minimus” trade rule, which allows imports under $800 to enter the United States without paying duties and taxes and with minimal customs inspection. They argued that this rule unfairly benefits foreign companies and platforms like Temu.
Data security is another concern raised by Scott due to Temu’s Chinese ownership. He emphasized the need to investigate potential risks to American consumers’ data privacy and security, particularly in light of China’s National Intelligence Law, which can compel Chinese companies to hand over data to Beijing’s intelligence agencies.
Scott called for a comprehensive investigation by the Commerce Department, working in collaboration with the Consumer Product Safety Commission and the Federal Trade Commission. He requested a detailed report on the findings and the evaluation of new regulations. Additionally, he requested a meeting with Secretary Raimondo to discuss the issue further.
As of now, neither the Commerce Department nor Temu officials have responded to requests for comment.
