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Daily Newsletter

02 December 2025

Daily Newsletter

02 December 2025

US Senator seeks inquiry into Shein, Temu over alleged IP theft, counterfeiting

US Senator Tom Cotton of Arkansas has called on the Departments of Justice and Homeland Security to launch an investigation into online retailers Shein and Temu over alleged intellectual property theft and counterfeiting.

Jangoulun Singsit December 02 2025

The Republican Senator issued this request through a letter dated 1 December 2025, addressed to Attorney General Pam Bondi, according to the US news site CNBC.

“These companies are engaged in industrial-scale IP theft and counterfeiting that is devastating American designers, brands and innovators,” Cotton wrote in the letter. 

Shein and Temu, which sell shirts priced at $20, have faced increased attention after the expiration of de minimis, a US trade exemption that contributed to their rise in the market.

The US Government eliminated the exemption that permitted goods valued at $800 or less to enter the country without a formal customs declaration for all countries, effective 29 August 2025.

Senator Cotton stated that ending the exemption would require both retailers to alter their business models, describing this as a "golden opportunity" for action.

"These companies now stock massive inventories in the US warehouses and distribution centres. This shift gives the Departments of Justice and Homeland Security Investigations a golden opportunity to act,” Cotton continued.

Shein operates as a private entity, while Temu is owned by PDD Holdings.

Shein has previously stated that it asks its suppliers to confirm their products do not violate any brand’s intellectual property rights or involve counterfeit goods.

According to a spokesperson, the company employs a team to monitor adherence to this policy and responds promptly when violations are found.

In addition, Texas Attorney General Ken Paxton announced an investigation into whether Shein has contravened state laws regarding labour practices and consumer product safety.

Recently, French authorities requested that a Paris judge suspend Shein’s operations in France for three months due to concerns about the sale of products such as childlike sex dolls and prohibited weapons.

Shein and Temu did not return a request for comment when approached by Just Style.

Earlier this year, Temu confirmed that it will no longer sell goods to US consumers that are imported from China, with orders now to be handled by locally based sellers.

In September last year, two members of the US Consumer Product Safety Commission called for an inquiry into Shein and Temu after allegations surfaced that hazardous products for infants and toddlers were available on both platforms.

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