NEW YORK: U.S. Republican Senator Tom Cotton has intensified political pressure on fast-fashion giants by urging the Department of Justice and the Department of Homeland Security to launch a comprehensive Shein Temu investigation. In a formal letter sent to Attorney General Pam Bondi, he accused the China-linked retailers of large-scale intellectual property theft, counterfeiting, and exploiting loopholes in U.S. trade rules. His demand marks a major escalation in U.S. oversight as concerns grow around the companies’ business practices and their impact on American brands.

Cotton’s letter, reviewed by journalists, highlights the mounting scrutiny surrounding the fast-growing platforms that built their consumer base on ultra-cheap $20 clothing and $10 accessories. Both Shein and Temu, which surged in popularity across the U.S., have become central to debates over fair competition, brand infringement, and supply chain transparency, fueling political appetite for a stronger Shein Temu investigation.

Regulatory Pressures Rise as Trade Rules Shift in the U.S.

According to Cotton, the end of a long-standing U.S. duty exemption for low-value imports—previously allowing packages under $800 to enter duty-free—forced significant changes in how both companies operate. The senator argues this shift removed the loophole that once enabled Shein and Temu to ship millions of parcels directly from China without traditional customs checks. He stated that the companies have since stockpiled large quantities of merchandise in American warehouses, placing them squarely under U.S. regulatory jurisdiction and strengthening the case for a deeper Shein Temu investigation.

In his letter, Cotton stressed that goods from these companies are “no longer slipping through ports” but are instead physically located within the country, making federal oversight more urgent and enforceable. This development places Shein and Temu under heightened legal risk should any evidence of counterfeit goods or trademark infringement emerge through a formal Shein Temu investigation.

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Global Concerns Intensify Over Counterfeits and Consumer Safety

The regulatory spotlight on Shein and Temu extends well beyond the U.S. The European Commission recently accused Temu of failing to prevent the sale of counterfeit goods—another catalyst fueling calls for a comprehensive Shein Temu investigation. At the time, Temu pledged cooperation with authorities, though concerns continue to grow about the platform’s oversight of third-party sellers.

Shein, meanwhile, has consistently claimed that it requires suppliers to verify that their products do not violate intellectual property laws. The company says it maintains a dedicated compliance team that removes non-compliant sellers swiftly. However, the persistent allegations from global regulators have kept the pressure alive for a deeper and more transparent Shein Temu investigation focused on supply chain ethics and IP violations.