Temu Under US and EU Investigation Amid Forced Labor and App Security Allegations

The US Department of Homeland Security (DHS) is investigating the Chinese e-commerce platform Temu for potential violations of the Uyghur Forced Labor Prevention Act (UFLPA), which could lead to a ban on its products in the United States. According to reports by The New York Post, the investigation centers on allegations that Temu relies on forced labor in its supply chains, particularly from China's Xinjiang region, to maintain its extremely low prices.

A senior DHS official confirmed the investigation, though the Biden administration has not yet taken formal action against the retailer. Temu was absent from a recent list of 29 Chinese companies sanctioned for UFLPA violations. The act, signed into law in 2021, prohibits importing goods made with forced labor, especially from Xinjiang, where Uyghur Muslims and other minorities are reportedly subjected to forced labor in detention camps. Companies found to violate the act are barred from selling their products in the US.

Temu, launched in 2022, has quickly penetrated US and European markets with a wide array of inexpensive products, from clothing to home goods. Items are often priced significantly lower than competitors, with products like a faux fur throw blanket available for $12.05—less than a third of similar items on Amazon. Intelligence experts and officials have raised concerns about how Temu sustains these prices, with former CIA officer Kevin Hulbert highlighting the possibility of using cheap cotton sourced from Xinjiang. He criticized the current self-certification process that allows Temu to claim compliance with UFLPA without external verification.

Calls are mounting for the US to revoke Temu's ability to self-certify compliance with forced labor laws. Experts argue that advanced forensic technology can trace the origins of materials, such as cotton, to specific regions, including Xinjiang. However, it is unclear if the DHS has employed these methods in its investigation of Temu’s supply chains.

The company has also faced scrutiny for cybersecurity concerns related to its mobile app. Comparisons have been drawn to TikTok, which was accused of granting the Chinese government access to user data, leading to its ban on federal devices in the US. A senior DHS official cautioned against downloading Temu's app, although it is unclear if the agency is formally investigating these claims.

In addition to US actions, the European Union recently launched its own investigation into Temu. The EU probe focuses on alleged violations of the Digital Services Act, including the sale of illegal products, concerns about algorithmic practices, and the platform’s potential to promote addictive consumer behavior. The EU investigation also explores whether Temu adequately protects user data and provides access for external research.

Temu’s market strategy, which heavily undercuts competitors, has led to accusations of unfair market practices. Critics argue that the company’s low prices are made possible through forced labor, raising ethical and legal concerns. In June 2023, the House Select Committee on the Chinese Communist Party urged the federal government to address these issues, highlighting that Temu’s business model might allow it to evade accountability under UFLPA unless direct proof of forced labor is provided.

The UFLPA represents one of the strongest US policy responses to China’s reported human rights abuses in Xinjiang. Passed during the Trump administration and enacted under President Biden, the act aims to block goods linked to forced labor from entering the US. Customs and Border Protection plays a key role in enforcement, emphasizing that these measures are essential to prevent human suffering in global supply chains.

Temu’s rapid rise in the global market has brought it under intense scrutiny for labor practices and cybersecurity issues. As investigations continue in both the US and EU, the platform faces growing pressure to address these concerns while maintaining its competitive edge. However, the timeline and outcome of the DHS investigation remain uncertain, leaving the future of Temu’s operations in Western markets in question.

Sources:

• New York Post
• ANI