US senator calls for federal investigation into potential Shein and Temu intellectual property violations

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US senator calls for federal investigation into potential Shein and Temu intellectual property violations

Arkansas Republican Senator Tom Cotton has requested that US authorities launch a formal inquiry into online retailers Shein and Temu, citing widespread concerns over intellectual property infringement and counterfeit goods. In a letter addressed to Attorney General Pam Bondi, Cotton urged both the Department of Justice and the Department of Homeland Security to scrutinize the companies, whose primary shipping operations are based in China.

Cotton highlighted that recent revisions to US trade regulations necessitate closer examination of these businesses. He pointed to the end of a customs exemption allowing imports under $800 to enter the US duty-free, noting that the policy change has "forced Shein and Temu to adjust their business models." According to Cotton, these companies now maintain large inventories in US warehouses, making their products subject to American legal oversight.

The senators call for investigation adds to mounting regulatory and political attention on both platforms, which have gained significant popularity by offering affordable apparel, accessories, and other consumer items. Shein remains privately owned, while Temu operates under PDD Holdings. Neither company has issued an immediate response to the request for investigation.

International regulators have also intensified their scrutiny. In July 2025, the European Commission determined that Temu had violated EU regulations by inadequately controlling the sale of counterfeit products. Temu indicated at the time that it would cooperate with the review. Shein has stated that its suppliers must confirm that products comply with IP laws and that it takes swift action against violations.

Additionally, Texas Attorney General Ken Paxton has opened an investigation into Shein regarding potential violations of state laws related to labor practices and unsafe products. French authorities have also taken action against Shein; in November, the French government sought a three-month nationwide suspension of Sheins operations after authorities identified prohibited items, including childlike dolls and banned weapons, on the platform.

Author: Natalie Monroe

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