Shein and Temu face fresh scrutiny as US senator seeks federal probe into counterfeiting

US Republican senator Tom Cotton has urged the departments of Justice and Homeland Security to investigate Shein and Temu over alleged large‑scale intellectual property theft and counterfeiting, intensifying regulatory focus on the fast‑fashion platforms that ship most goods from China.

In a letter seen by Reuters, Cotton said the recent end of a US trade exemption that allowed packages under $800 to enter duty‑free has forced both retailers to overhaul logistics, arguing the shift places their operations squarely within tighter oversight. “These companies now stock massive inventories in US warehouses and distribution centres. Their goods are no longer slipping through ports,” Cotton wrote. “They are sitting on American soil under US jurisdiction.”

Shein and Temu did not immediately comment on the letter. Shein, which is privately held, has previously said it requires suppliers to certify that products do not infringe on intellectual property and are not counterfeit, adding that a compliance team enforces policy and “takes swift action if they are not in compliance,” according to a spokesperson’s prior statement. Temu, owned by PDD Holdings, has been under review in Europe, with the European Commission stating in July that Temu was breaking EU rules by not doing enough to prevent the sale of counterfeit goods. The company said at the time that it would fully cooperate with the Commission.

Cotton’s call follows broader legal and regulatory actions targeting the platforms. Texas attorney general Ken Paxton said he is investigating whether Shein violated state law related to unethical labour practices and the sale of unsafe consumer products.

In France, authorities recently moved to suspend Shein for three months after finding childlike sex dolls and weapons for sale on its platform. The country’s finance ministry later said the suspension proceedings were halted after Shein withdrew the illicit products, though the company remains under close observation and judicial actions continue.



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