SEATTLE - Florida Attorney General Ashley Moody joined 20 counterparts across the U.S. to demand answers from online retailer Temu over recent reports that the company may not be following federal law or the states' consumer protection law, as well as questioning the company's possible ties with the Chinese Communist Party.
The officials also seek to learn about its data collection and sharing practices, as well as possible violations of the Uyghur Forced Labor Prevention Act.
The officials sent a letter to the president of Temu and the CEO of PPD Holdings Inc., Temu's parent company, where they outline their concerns about possible malpractices. Temu was given 30 days to respond.
"A congressional investigation uncovered that Temu may be illegally selling products made with forced labor in an area of China in which the Chinese Communist Party is committing genocide," Moody said. "Additionally, there are reports that Temu is gathering U.S. consumer information and passing it along to the CCP."
According to Moody, the company admitted that "it does not have a policy in place to prohibit the sale of goods from Xinjiang – the location of the CCP's ongoing genocide against the Uyghurs." The release also stated that Temu claimed it is not subject to the UFLPA.
The inquiry by almost two dozen attorneys general across the nation comes as recent findings by the United States House Select Committee on the Chinese Communist Party indicated that Temu has failed to comply with U.S. laws prohibiting the import of goods made with forced labor.
The e-commerce company has also been criticized for its lack of a compliance system, which reportedly relies on Chinese suppliers to voluntarily report any violations.
"Congressional investigators believe that your company, Temu (which is owned by PDD Holdings), is illegally selling products made by forced labor in an area of China in which the CCP is committing genocide," the Attorneys General wrote.
The list of states with state attorneys general demanding answers from Temu are: Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Virginia and West Virginia.
The committee also found that Temu, as well Shein, another online retailer, "rely heavily" on the U.S. shipping provision known as the "de minimis exception," which allows importers to avoid customs duties on packages valued under $800.
According to the report, both Temu and Shein are likely responsible for over 30% of all global shipments into the U.S. valued under $800 in 2022. For reference, retailer Gap paid $700 million in import duties in 2022, whereas Shein and Temu paid none, according to the report from the House committee.
© 2024 Latin Times. All rights reserved. Do not reproduce without permission.
