US Department of Homeland Security probes Temu for slave labour links amid market concerns
The US Department of Homeland Security (DHS) is currently investigating the Chinese e-commerce platform Temu for potential violations of the Uyghur Forced Labor Prevention Act (UFLPA). This scrutiny comes amidst rising concerns that such violations could lead to Temu being prohibited from selling its products within the United States.
Officials and intelligence experts have voiced concerns about Temu’s remarkably low prices, which are thought to negatively impact the US market. The company reportedly monitors its mobile app users and relies on products made through forced labor to maintain its low price point.
A senior official from DHS confirmed the investigation into Temu but noted that the Biden administration has not yet made any moves against the platform. Notably, Temu was absent from a recent list of 29 Chinese companies banned from the US market for violating the UFLPA.
The UFLPA, a piece of legislation that originated during the Trump administration and was signed into law by President Biden in 2021, forbids the importation of goods produced wholly or partially using forced labor in China, especially from the Xinjiang region, where Uyghur Muslims are believed to be held in forced labor camps.
If any company is found in violation of this law, it is added to the UFLPA entity list, which prohibits them from selling goods in the US market. Customs and Border Protection has emphasized the importance of enforcing this act to ensure that goods entering the US are not products of human suffering.
The UFLPA represents a significant stance by the US against China’s alleged systemic use of forced labor involving Uyghurs and other ethnic minorities in the Xinjiang Uyghur Autonomous Region, according to Customs and Border Protection.
Temu, which launched its platform in 2022, has quickly captured the US and European markets with a diverse array of products, ranging from clothing to household items, all offered at considerably lower prices than competitors. For instance, one of the top-selling items on the site, a faux rabbit fur throw blanket, retails for just $12.05, which is significantly less than similar items offered on other platforms.
Concerns regarding Temu’s pricing strategies have been articulated by experts for years. A former senior intelligence officer noted that the business model, which allows the sale of products like an $8 dress shipped from halfway around the world, raises questions about how the company manages such low production costs. This spurs suspicion that the affordability may be a result of using cheaper materials sourced from the Xinjiang region.
As the U.S. political landscape evolves, some national security advocates are pushing for the revocation of Temu’s self-certification rights regarding compliance with the UFLPA. Advanced technologies capable of verifying the origins of materials have been noted, suggesting that should these capabilities be applied, they might reveal whether Temu’s products are sourced from areas utilizing forced labor.
In June 2023, a congressional committee urged the federal government to conduct a comprehensive investigation into Temu, stressing the high risk that the company’s supply chains may be tainted by forced labor practices. The report highlighted that American consumers should be aware of these risks within Temu’s supply chain.
Security issues surrounding Temu’s mobile application have also emerged, reminiscent of the concerns that led to the prohibition on the social media platform TikTok. Allegations have circulated that TikTok was engaged in spying activities and compromising user data. A senior DHS official expressed skepticism about downloading Temu’s app, although it remains unclear if there is an ongoing investigation related to these cybersecurity concerns.
Recently, the European Union initiated an investigation into Temu for potential breaches of its Digital Services Act. The inquiry addresses various practices related to the sale of illegal products, the addictive nature of the platform, algorithmic recommendation systems, and the extent of data access granted to researchers.
