Shein & Temu: EU Commissioner Warns of Dangerous Goods
EU Consumer Watchdog Warns of “Unfair Competition” as Low-Value Imports Surge
brussels, Belgium – Ireland’s Minister for Consumer Protection, Michael McGrath, has voiced grave concerns over the escalating influx of low-value goods into the European Union, warning of notable risks to consumer safety and a detrimental impact on local businesses. The surge in online purchases, especially from platforms like Shein and Temu, is placing immense pressure on existing regulatory systems, prompting calls for stricter enforcement and potential policy changes.
safety Gate Overwhelmed by Unsafe Products
The EU’s Safety Gate system, a rapid alert mechanism for unsafe non-food products, has seen a record number of notifications. Last year, the service received 4,137 alerts, with cosmetics topping the list, followed by toys, electrical appliances, automotive products, and chemicals. This trend highlights a growing problem of potentially hazardous items reaching European consumers.
“I am shocked by it, and I think we have a duty to protect European consumers,” Mr McGrath stated, emphasizing the need for robust consumer protection measures.
Unfair Competition Threatens European Businesses
Beyond safety concerns,Mr McGrath is deeply worried about the “level playing field issue” for European businesses. The exponential growth of online marketplaces has created an habitat where sellers who do not comply with EU regulations can undercut local businesses that incur significant costs to meet these standards.
“It’s not only about protecting consumers, but there is a very serious level playing field issue here for European businesses, because they are expected to compete with sellers who are not complying with our rules,” he explained. “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.”
The Scale of the challenge: Millions of Consignments Daily
EU figures paint a stark picture of the scale of the problem. An estimated 12 million low-value items enter the bloc daily, translating to 4.6 billion consignments valued under €150 for 2024. This represents a doubling from 2023 and a tripling compared to 2022, underscoring the immense pressure on customs and regulatory bodies.
Potential EU Policy Responses
In response to this growing challenge,the EU is considering several measures:
Abolition of the €150 Duty-Free Threshold: This move aims to deter low-value purchases and ensure that all imported goods are subject to appropriate duties and checks.
Introduction of a Handling Fee: A fee for each package could help offset the costs associated with increased customs investigations and enforcement.
Creation of an EU-Wide Customs Authority: To address systemic issues and streamline enforcement, a centralized authority is being considered.
These potential changes mirror actions taken in the United States, where former President Donald Trump signed an executive order to end the $800 duty-free threshold, imposing additional taxes on low-value imports, primarily targeting Chinese sellers.
Mr McGrath indicated that the issue is highly likely to be a key topic of discussion during his planned visit to china later this year, and potentially at an upcoming EU-China summit in Beijing. ”It will certainly be engaging directly with Chinese authorities and we will visiting later on this year,” he confirmed.
Industry Response: Shein’s Commitment to Safety
Shein, a prominent player in the ultra-fast fashion market, has responded to these concerns by stating it’s commitment to compliance and safety.The company announced an investment of $15 million this year in compliance and safety initiatives, including 2.5 million product and safety quality tests and partnerships with 15 testing centers.
“Earning and maintaining the trust of our consumers is paramount, and we are fully committed to ensuring the products we offer are safe and compliant,” a Shein spokesperson stated. “All of our vendors are required to comply with shein’s code of conduct and stringent safety standards, and must also abide by the relevant laws and regulations of the markets where we operate.” the company also noted that it had removed 500 vendors as the launch of its marketplace.
Temu has been approached for comment.
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This article was originally published by The Guardian.*