Aug 15, 2024, 4:56 PM
Aug 15, 2024, 4:56 PM

Sen. Rick Scott Calls for Investigation into Temu's Business Practices

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Highlights
  • Sen. Rick Scott calls for an investigation into Chinese-owned company Temu.
  • Concerns include product safety, labor practices, unfair competition, data privacy, and counterfeit goods.
  • The Commerce Department is urged to look into potential issues with the company.
Story

Senator Rick Scott (R-Fla.) has urged the U.S. Commerce Department to investigate the Chinese online retailer Temu, citing concerns over its business practices that could threaten American economic interests and consumer safety. In a letter dated August 14, Scott outlined five critical areas of concern: product safety and quality, labor practices, unfair competition, data privacy, and counterfeit goods. He emphasized that Temu's products may not undergo the same rigorous safety inspections as those from other global competitors, raising alarms about potential risks to consumers. Scott highlighted alarming reports of unsafe working conditions and labor abuses linked to Temu's supply chain, stressing the need to ensure that products are not manufactured using forced labor or other unethical practices. He pointed out that Temu lacks a compliance system for the Uyghur Forced Labor Prevention Act (UFLPA), which aims to prevent goods produced with forced labor from entering the U.S. market. The senator also expressed concerns about Temu's ability to offer lower prices than U.S. retailers, suggesting this could stem from unfair trade practices. Additionally, Scott raised issues regarding data privacy, particularly given Temu's Chinese ownership. He noted that U.S. companies have issued warnings about potential risks associated with the Temu app, prompting calls for consumers to remove it from their devices. Scott has requested a comprehensive investigation by the Commerce Department, in collaboration with the Consumer Product Safety Commission and the Federal Trade Commission, to assess these risks and consider new regulations. As of now, neither the Commerce Department nor Temu has responded to requests for comment.

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