Key facts
- Shein's U.S. operations are being investigated by the Federal Trade Commission.
- The Texas Attorney General is investigating Shein over allegations of forced labor and unsafe materials.
- Concerns have been raised about Shein's product safety, labor practices, and data privacy.
- Shein has faced scrutiny from regulators in South Korea and the European Union regarding product safety.
- Senator Tom Cotton has called for a federal investigation into Shein and Temu for intellectual property theft.
Shein's U.S. operations are currently under investigation by the Federal Trade Commission, as disclosed by the fast-fashion e-commerce platform in documents related to its Hong Kong IPO. This national-level scrutiny is compounded by a separate investigation launched by the Texas Attorney General on December 1, 2025. The Texas probe focuses on allegations of forced labor, the use of unsafe materials, and deceptive marketing practices. Concerns extend to whether Shein's sourcing practices align with its claims of responsible and ethical production, potentially violating consumer protection laws.
Regulators internationally have previously raised flags regarding Shein's operations. South Korea's Ministry of Environment reported excessive levels of lead, phthalates, and formaldehyde in children's items and fashion accessories throughout early to mid-2024. The European Commission's Safety Gate alerts have also listed Shein products for chemical and physical risks over several years, necessitating product removals due to ongoing quality control issues. These international concerns are now being examined within the U.S. market by Texas investigators.
Senator Tom Cotton has also advocated for a federal investigation into Shein and its competitor Temu, describing them as "Communist Chinese" platforms involved in intellectual property theft that has harmed U.S. businesses. He accused Temu of carrying "sophisticated and deceptive fakes." In response to the Texas investigation, Shein stated that it takes concerns about its business practices seriously and welcomes constructive engagement. Public Eye investigations in 2021 highlighted potentially harsh working conditions and unlawful overtime practices in Guangzhou garment-manufacturing plants supplying Shein.