Sen. Tom Cotton has called on the Justice Department to launch a probe of Chinese commerce platforms Shein and Temu over alleged counterfeiting.
In a letter Monday to Attorney General Pam Bondi, Mr. Cotton, Arkansas Republican, called the companies “Chinese communist retail platforms” and denounced their alleged “industrial-scale IP theft and counterfeiting that is devastating American designers, brands, and innovators.”
Mr. Cotton cited an August report from the Information Technology and Innovation Foundation. It found that, out of 51 products bought from Temu, Shein and AliExpress, 24 were “likely counterfeits, including cosmetics, toys, luxury goods, pharmaceuticals, and household items.”
The foundation said Shein’s alleged intellectual property infringement largely centered on “unauthorized reproduction of creative works by independent designers.” It said Temu “may host more deceptive counterfeits that closely mimic legitimate products in appearance and packaging,” with items bearing “barcodes, certification marks, or manufacturer references that appear authentic.”
Mr. Cotton said that since the “de minimis” rule exempting packages worth less than $800 from customs duties was ended by executive order, Temu and Shein now have large inventories in American warehouses awaiting distribution instead of their previous model of shipping small packages.
“Their goods are no longer slipping through ports. They are sitting on American soil under U.S. jurisdiction. This shift gives the Department of Justice and Homeland Security Investigations a golden opportunity … I urge you to prioritize Shein and Temu facilities for immediate inspections, seizures, and criminal investigations. … This enforcement action would send a strong message: the United States will no longer tolerate Chinese platforms looting American intellectual property,” Mr. Cotton concluded his letter to Ms. Bondi.
Around 90% of all counterfeit goods seized in the U.S. in 2024, worth an estimated $5.02 billion, hailed from China and Hong Kong, the Information Technology and Innovation Foundation said.
Neither Temu nor Shein have responded to a request for comment.
