EU Commissioner Michael McGrath Raises Alarm Over Unsafe Goods from Shein and Temu

In a recent statement, EU Justice Commissioner Michael McGrath expressed grave concerns regarding the safety of products sold by Chinese retail platforms Shein and Temu. This revelation comes amid an ongoing investigation into the compliance of these platforms with European Union (EU) safety regulations. McGrath's remarks were made in light of a significant influx of low-value parcels entering the EU, with approximately 12 million items crossing borders daily, predominantly from non-EU retailers.

The EU's commitment to consumer protection is being tested as McGrath awaits the results of a secret shopper investigation aimed at assessing the safety of products available online. The findings thus far indicate alarming violations, including baby soothers that pose choking hazards due to non-compliance with safety standards, and children's raincoats containing toxic chemicals. These concerns were highlighted in a recent report by Members of the European Parliament (MEPs), which detailed various unsafe products ranging from sunglasses lacking UV protection to children's clothing with hazardous drawstrings.

According to McGrath, the situation is compounded by the rapid growth of these retail platforms, which he believes undermine local businesses by circumventing EU laws. "The growth is extraordinary, and it has placed enormous pressure on the systems at member state level," he stated. The EU is now considering measures such as abolishing the €150 duty-free threshold on low-value imports and possibly introducing handling fees for packages to offset the costs of increased customs inspections. Such actions reflect similar strategies employed in the United States, where the previous administration sought to limit the duty-free allowance for Chinese goods.

In response to the criticisms, Shein announced a $15 million investment in compliance and safety initiatives, which includes extensive product testing and partnerships with testing centers across Europe. The company emphasized its commitment to consumer safety and compliance with applicable laws. However, Temu has not yet provided a comment regarding the allegations.

The broader implications of these developments extend beyond consumer safety, as the EU grapples with the economic impact of non-compliant foreign competition. McGrath noted that local businesses that adhere to EU regulations face an uneven playing field against sellers who do not. "They are incurring significant costs in Europe to comply with our requirements, and they should not be expected to compete with those who are not doing the same," he asserted.

As the EU prepares for a possible summit with Chinese authorities, the future of e-commerce regulation in Europe remains uncertain. McGrath's proactive stance indicates a commitment to addressing these pressing issues head-on, with an eye toward both consumer safety and fair competition.