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Sen. Scott Urges Trade Division to Examine Chinese language-Owned Temu

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Product protection, exertions practices, unfair festival, knowledge privateness, and counterfeit items are issues related to the corporate, mentioned Sen. Rick Scott.

Sen. Rick Scott (R-Fla.) is asking at the Trade Division to release an investigation into the industry practices of the Chinese language price range on-line store Temu.

In a letter dated Aug. 14 to Trade Secretary Gina Raimondo, Scott warned that the fast-growing Temu represents “a brand new problem” to efforts to make sure honest industry practices in the USA.

“To give protection to our country’s financial pursuits and the well-being of our electorate, I imagine it’s crucial that we deal with this factor promptly,” Scott advised Raimondo.

Introduced in the USA in September 2022, Temu is owned by way of Chinese language e-commerce massive PDD Holdings, which additionally operates the Chinese language e-commerce platform Pinduoduo. In January, the analysis company Market Pulse estimated that greater than 100,000 China-based dealers had been working on Temu.

Scott known 5 spaces of shock surrounding Temu—product protection and high quality, exertions practices, unfair festival, knowledge privateness, and counterfeit items—as explanation why the Trade Division should take motion towards the buying groceries platform.

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The Florida senator warned that merchandise bought on Temu “don’t seem to be matter to the rigorous protection exams and inspections that different competitor merchandise made in other places world wide go through.”

“There are issues that Temu is also a conduit for counterfeit merchandise,” he added.

South Korea’s Yonhap Information Company reported on Tuesday that poisonous ingredients had been discovered on girls’s equipment, corresponding to hats and sandals, being bought on 3 Chinese language on-line platforms, together with Temu, mentioning the South Korean town govt of Seoul.

“There are experiences of unsafe operating prerequisites, exertions abuses, and human rights violations related to [the] manufacturing of goods for Temu,” Scott wrote. “We want to be sure that the goods bought on Temu don’t seem to be manufactured the use of pressured exertions or different unethical practices that violate world exertions requirements.”

In June remaining yr, the Area Make a choice Committee at the Chinese language Communist Birthday party (CCP) printed a document caution shoppers that “there may be a particularly top chance that Temu’s provide chains are infected with pressured exertions.”

“Temu does no longer have any gadget to make sure compliance with the Uyghur Pressured Exertions Prevention Act (UFLPA),” the document reads.

The legislation bans imports from China’s far-western area of Xinjiang—the place the Chinese language regime has been accused of committing genocide towards Uyghurs—except corporations can end up merchandise weren’t produced with pressured exertions.

Scott additionally wondered Temu’s skill to promote merchandise at decrease costs than American outlets, suggesting that it would end result from “unfair industry practices or the exploitation of loopholes in our import rules.”

In February, Scott and Sen. Sherrod Brown (D-Ohio) despatched a letter to President Joe Biden, asking his management to finish the “de minimus” industry rule as it’s a loophole that “unfairly advantages overseas corporations and in another country e-commerce platforms corresponding to Temu.” Below the guideline, imports beneath $800 in valuation can input the USA with out paying tasks and taxes and with very little customs inspection.

“De minimis shipments, now numbering 3 million an afternoon, are at an increased chance of violating UFLPA, containing counterfeit items, exacerbating the fentanyl disaster, or posing a significant well being risk to shoppers,” the 2 senators wrote of their letter.

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The Florida senator identified in his Aug. 14 letter that knowledge safety will have to be any other worry.

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“Given Temu’s Chinese language possession, we should examine attainable dangers to American shoppers’ knowledge privateness and safety,” Scott wrote. “Considerations relating to exploitation of Temu software customers lead U.S. founded corporations to announce warnings and ‘how-to’ guides on taking out the Temu software from its software buying platform and person units.”

In China, there are other regulations, together with the Nationwide Intelligence Regulation, that may compel Chinese language corporations handy over knowledge amassed inside of China and in other places to Beijing’s intelligence companies.

Scott requested the Trade Division to “release a complete investigation” into Temu, paintings with the Shopper Product Protection Fee and the Federal Industry Fee to evaluate attainable dangers, evaluation the will for brand new rules, and publish an in depth report back to Congress on its findings.

The Florida senator additionally asked a gathering with Raimondo to talk about the problem.

The Epoch Occasions has contacted the Trade Division and Temu for remark however didn’t obtain a reaction on the time of newsletter.

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