US accuses Shein, Temu of data risks in latest action targeting Chinese-backed apps
- The USCC report primarily focused on Shein, the popular fast fashion platform founded in China and now headquartered in Singapore
- Temu saw a 45 per cent surge in downloads and 20 per cent growth in its daily active user base after it ran ads during the Super Bowl in February
Chinese-backed digital platforms Shein and Temu have become the latest targets of the US government, after an official report raised concerns over their data risks and other business practices.
The US-China Economic and Security Review Commission (USCC), created by Congress in 2000, published a report on Friday that accused the two popular apps and other similar Chinese platforms of possible data risks, sourcing violations and intellectual property infringements.
The USCC report primarily focused on Shein, the popular fast fashion platform founded in China and now headquartered in Singapore. Shein’s app “requests that users share their data and activity from other apps, including social media, in exchange for discounts and special deals on Shein products”, the report said.
Shein “has struggled to protect user data”, it added, referring to a US$1.9 million fine New York State imposed on its parent Zoetop last year for mishandling credit card and other personal information.
In addition, Shein also sourced clothing from China’s Xinjiang region but failed to prove it was not a product of forced labour, a requirement under the Uygur Forced Labor Prevention Act, the report said, citing an investigation by Bloomberg News in November.
