In recent years, China’s e-commerce giant Pinduoduo’s cross-border platform “Temu” has rapidly expanded globally with a model of selling ultra-low-priced goods. On Wednesday, August 14, United States Senator Rick Scott sent a letter to US Secretary of Commerce Gina Raimondo, expressing deep concerns about the rapid growth of the e-commerce platform Temu and its potential threats to American consumers and businesses.
Scott raised concerns in his letter about five issues related to Temu, including product safety and quality, labor issues, unfair competition, data privacy, and counterfeit goods. He urged the Department of Commerce to take action.
The Senator mentioned the increasing concerns about the safety and quality of products sold by Temu. These products have not undergone the strict safety testing and inspection as they should, and the government should ensure that these products meet US safety standards and do not pose risks to consumers.
According to reports from the South Korean news agency, the Seoul city government found in a recent inspection of products on e-commerce platforms that several products sold by three Chinese cross-border platforms, including Temu, exceeded the permissible limits of harmful substances, with some exceeding the limits by over two hundred times, prompting the demand for the removal of these products.
Scott also cited previous reports in his letter, stating that there are unsafe working environments, labor abuses, and human rights violations in the manufacturing process of Temu’s products. He emphasized that the US government needs to ensure that products sold on the Temu platform are not produced through unethical practices such as forced labor that violate international labor standards.
According to Voice of America (VOA), the House Select Committee on Communist Problems issued a preliminary investigation report in June last year, stating that Temu’s business model relies on fine print loopholes to avoid responsibilities under laws like the Uyghur Forced Labor Prevention Act and relies on tens of thousands of Chinese suppliers to directly ship goods to American consumers.
Data from Earnest Analytics, a New York-based data analysis company, shows that as of November of last year, Temu had captured nearly 17% of the discount retail market in the United States, putting significant competitive pressure on traditional US retailers.
Scott believes that Temu’s ability to offer products at ultra-low prices indicates possible unfair trade practices or exploitation of loopholes in US import regulations, which will severely harm US businesses, especially small and medium enterprises.
He expressed concerns about the security of US consumer data held by Temu’s Chinese-based parent company. He added that it is necessary for the US government to ensure that user data and privacy are adequately protected to prevent misuse or transfer to foreign entities.
Additionally, Scott voiced concerns about the issue of counterfeit products on Temu, stating that it not only damages legitimate businesses but also poses risks to consumers.
Scott called on the US Department of Commerce to conduct a comprehensive investigation into Temu’s business practices, supply chain, and compliance with US trade laws and regulations. He urged cooperation with relevant agencies such as the Consumer Product Safety Commission and the Federal Trade Commission to assess the risks American consumers may face, and determine whether new regulations or enforcement actions are needed to address these risks.
Scott demanded that the Department of Commerce submit a detailed investigation report to Congress, outlining the investigation results and recommending measures and actions to protect American interests.
He emphasized that in order to protect the economic interests of the United States and the well-being of its citizens, it is necessary to “address this issue immediately.”