Sen. Scott Calls for Commerce Department Probe into Chinese-Owned Temu

Sen. Rick Scott (R-Fla.) has called on the Commerce Department to ⁢investigate Chinese‌ budget online retailer Temu’s business ⁢practices. In a letter dated Aug. 14 to Commerce⁣ Secretary Gina ​Raimondo, Scott⁤ expressed concerns about⁢ Temu’s ‌rapid ⁢growth⁣ and its‌ potential‍ impact on fair trade practices in the United‌ States.

“To protect our ​nation’s economic interests and the well-being of our citizens, I believe⁢ it is ⁢imperative that we address this issue ‌promptly,” Scott wrote.

Temu, ⁣owned by ⁤Chinese e-commerce giant PDD Holdings, ‍launched in the United States in September 2022. According to ‌research firm Marketplace ⁤Pulse, there are ⁣over 100,000 China-based ‍sellers‍ operating on Temu.

Scott ⁣identified five areas ⁤of ⁤concern regarding Temu: product⁢ safety and quality, labor practices, unfair competition, data privacy, and counterfeit goods. He ⁣warned that products sold‌ on Temu may not undergo rigorous safety tests like competitor products from other parts of the world.

“There ⁤are concerns that Temu may be a conduit for counterfeit products,”⁢ he added.

South Korea’s Yonhap ​News Agency reported‍ toxic substances being‍ found on women’s accessories sold on three ‌Chinese online platforms including Temu. Reports have also surfaced about unsafe‌ working conditions ⁢and labor abuses associated with production for Temu.

In June last year,‌ the ​House Select Committee on⁤ the Chinese Communist Party (CCP)‌ published a report warning consumers about‍ forced⁢ labor risks​ within Temu’s supply chains.

Scott ⁣also⁤ questioned how Temu can sell products​ at lower prices than U.S. retailers and suggested it⁣ could be ⁣due to unfair trade practices or loopholes in import regulations.

In February,‌ Scott and Sen. Sherrod Brown (D-Ohio) sent a letter to President Joe Biden⁢ urging an end to the “de minimus” trade rule which benefits foreign companies‌ like Temu by allowing duty-free imports ‍under $800 without thorough customs inspection.

Data security is another concern raised by Scott due to Temu’s Chinese ⁤ownership. He ‍emphasized investigating potential ⁢risks ⁢to American consumers’ data privacy and security⁢ given China’s laws that allow‍ access to data collected by Chinese​ companies for intelligence purposes.

Scott⁣ requested​ that the Commerce Department ‌conduct a comprehensive investigation into Temu while collaborating with relevant‌ agencies such as Consumer​ Product Safety Commission and Federal‍ Trade ​Commission. He also asked for a detailed report submitted to Congress ⁢outlining their findings along with a meeting with Secretary Raimondo regarding this issue.

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