Temu, Shein targeted as EU cracks down on unsafe ecommerce imports

By Foo Yun Chee

BRUSSELS (Reuters) - Chinese online marketplace Temu and fast-fashion retailer Shein will be liable for the sale of unsafe and dangerous products on their platforms, the European Commission said on Wednesday as part of a crackdown against the flood of cheap ecommerce imports into the European Union.

The EU executive also said it would coordinate a joint investigation by the Consumer Protection Cooperation (CPC) Network of national consumer authorities into Shein based on suspicions that the company infringes EU consumer protection rules.

The measures by the EU executive echoed a similar push by the U.S. government which ended a trade provision this week used by retailers including Temu and Shein to ship low-value packages duty-free to the United States.

The Commission said its concerns were triggered by some 4.6 billion low-value items below 22 euros imported into the EU last year, equal to 12 million parcels per day, 91% of which came from China. The figure was double that in 2023.

It said the cheap imports pose unfair competition to EU sellers which follow the rules while the large number of packages being shipped has a negative impact on the environment and climate.

"We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment," EU tech chief Henna Virkkunnen said in a statement.

Shein said it would engage with the consumer agencies and the Commission.

"We share the CPC Network's goal of ensuring European consumers can shop online with peace of mind, and we intend to work closely with the CPC Network and the Commission to address any concerns," a spokesperson said.

Temu did not immediately respond to a request for comment. 

(Reporting by Foo Yun Chee)