A lawmaker is calling on the Biden administration to investigate and ban Chinese e-commerce company Temu over forced labor and data privacy violation concerns.
In a letter to President Joe Biden on Monday, Sen. Tom Cotton (R-Ark.) described Temu as a “pipeline of dumped, counterfeit, and slave labor products from China that is also gathering massive quantities of Americans’ personal data.”
Temu packages have avoided Customs and Border Protection scrutiny by claiming the de minimis exemption, a loophole for shipments valued at $800 or less that can help those imports avoid being flagged for potential Uyghur Forced Labor Prevention Act (UFLPA) violations, according to Cotton.
Earlier this month, the Department of Homeland Security announced a new strategy to close the loophole for textile-related shipments from China that have not been screened for UFLPA violations.
Cotton’s letter cited an investigation by the House Select Committee on the Chinese Communist Party, which warned American consumers in June of the “extremely high risk that Temu’s supply chains are contaminated with forced labor.”
“Temu conducts no audits and reports no compliance system to affirmatively examine and ensure compliance with the UFLPA,” the committee found.
Cotton warned Temu’s data gathering practices “may be even more dangerous than TikTok’s,” with a lawsuit alleging the app can access “‘everything on your phone.’”
Cotton asked the Biden administration to provide feedback on questions, including whether it has investigated Temu’s data gathering practices or directed the Treasury Department or Securities and Exchange Commission to investigate Temu for anti-money laundering or securities violations, respectively.
PDD Holdings, the parent company of Temu, did not respond to a request for comment.
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