The Texas attorney general is investigating global retailer Shein for potentially violating Texas law.
Ken Paxton is looking into Shein US Services LLC Corp. and its affiliates for possibly breaking statutes related to unethical labor practices and the sale of unsafe consumer products, the AG said in a statement on Monday. The Singapore fast-fashion company that was founded in China has been a growing player in the online market and in the past has featured temporary physical retail options in Texas.
The investigation will determine if the company’s supply chain and manufacturing practices violate state law “by using toxic or hazardous materials, misleading consumers about product safety, and misleading consumers about ethical sourcing,” the statement said. The probe will look into data collection and privacy practices as well.
“Any company that cuts corners on labor standards or product safety, especially those operating in foreign nations like China, will be held accountable,” said Attorney General Paxton. “Texans deserve to know that the companies they buy from are ethical, safe, transparent, and not exploiting workers or selling harmful products. I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health.”
D-FW Retail News
Shein didn’t immediately respond to a message seeking comment.
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Shein has come under pressure from the government in the U.S. and abroad amid its growth. Earlier this year, the Trump administration shifted rules to make it more difficult for importers to use trade rules to keep duties lower on some goods. The Asian company has faced scrutiny across the Atlantic where the European Union is demanding more information on what it’s doing to protect children and to prevent illegal goods.
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