For years, Shein and Temu seemed unstoppable. With their slick apps and low prices, these retail titans conquered the smartphones of millions of Americans.
However, the political winds shifted violently this week. Now, their American dream is transforming into a legal and regulatory nightmare. Pressure is mounting from two distinct fronts: the courtrooms of Texas and the corridors of power in Washington, D.C.
The Showdown in Texas
The first major blow landed in the Lone Star State. Texas Attorney General Ken Paxton opened a new front in the battle against big tech. On Monday, he launched a sweeping investigation into Shein.
Paxton’s probe goes beyond business technicalities. Instead, it strikes at the moral core of the company’s operations. The Attorney General is investigating serious allegations, including:
-
Forced Labor: Evidence of forced labor deep within Shein’s supply chain.
-
Safety Hazards: Reports that cheap clothes flooding Texas mailboxes may contain hazardous materials.
-
Data Privacy: How the platform harvests user data and whether it misleads consumers.
“I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health,” Paxton declared online. He signaled that the state is ready to drag the retailer’s secrets into the light.
A “Golden Opportunity” in Washington
While Texas applies pressure locally, Senator Tom Cotton is orchestrating a federal offensive. The senior Republican from Arkansas has set his sights on both Shein and Temu. He brands them as “Communist Chinese” platforms that exploit the American market.
Cotton believes the timing for a crackdown is perfect. In a letter to US Attorney General Pam Bondi, he pointed to a seismic shift in trade policy. Specifically, he cited President Donald Trump’s recent abolition of the “de minimis” rule.
For years, this rule was a loophole. It allowed packages under $800 to enter the US tax-free with minimal inspection. Its removal in August changed everything.
Now, millions of packages from China sit stalled in US warehouses. They are subject to levies and strict checks. Cotton calls this logistical logjam a “golden opportunity” for the Department of Justice to act.
The High Cost of “Fast” Fashion
Beyond geopolitics, the allegations suggest a business model built on theft and deception.
Cotton championed the cause of American designers and small brands. These creators often wake up to find their original designs replicated on these platforms within days. Worse, the copies sell for pennies on the dollar.
He accused Shein of systematic intellectual property theft. Furthermore, he blasted Temu for hosting “sophisticated and deceptive fakes.” Washington’s message to these platforms is clear: the free ride is over.
The Giants Respond
Facing this two-pronged assault, Shein adopted a cooperative posture. The Singapore-headquartered retailer stated that it takes concerns about its business practices seriously.
“We welcome constructive engagement with Attorney General Paxton,” the company said. They promised to cooperate with the Texas probe.
However, Shein remained silent on Senator Cotton’s demands for a federal investigation. Meanwhile, Temu has not issued an immediate response as the scrutiny intensifies.
This US pressure is not an isolated event. It mirrors a global awakening to the hidden costs of ultra-fast fashion. From EU regulators flagging safety concerns to French authorities investigating harmful content, the net is tightening around the industry’s biggest disruptors.
MORE: Elon Musk Calls for Reform, Not Removal, of H-1B Visa Program