FLORIDA, USA — Attorneys general from 21 states, including Florida and Georgia, are calling for answers from the online retailer Temu, over concerns the company is illegally selling products made with forced labor linked to the Chinese Communist Party (CCP).
Florida Attorney General Ashley Moody joined others in signing a letter sent Thursday to Qui Sun, the president of Temu and Chen Lei, the chief executive officer of PPD Holdings Inc., Temu's parent company.
PPD Holdings is "credibly accused" by Congress members of being linked to the CCP, according to the letter signed by 21 attorneys general.
The letter argues Temu is "illegally selling products made by forced labor in an area of China in which the CCP is committing genocide," and has failed to comply with American laws prohibiting the use of forced labor by Uyghurs.
The attorneys general cite evidence from a 2023 labor investigation conducted by the United States House Select Committee on the Chinese Communist Party, which found Temu has no policy prohibiting the sale of goods from Xinjiang, the known location of "CCP's ongoing genocide against Uyghurs."
The committee said Temu claimed it is not subject to following the Uyghur Forced Labor Prevention Act (UFLPA), a U.S. federal law banning the import of goods manufactured with forced labor in China's Xinjiang region.
"This all but guarantees that shipments from Temu containing products made with forced labor are entering the United States on a regular basis, in violation of the UFLPA," the report notes.
The committee also found that Temu, and another fast fashion retailer, Shein, "rely heavily" on the U.S. shipping provision known as the "de minimis exception," which allows importers to avoid customs duties on packages valued under $800.
According to the report, Temu and Shein are likely responsible for over 30% of all global shipments into the U.S. valued under $800 in 2022. The report claims Temu and Shein ship packages "duty-free" without providing sufficient data on the contents of the packages.
For reference, in 2022, retailer Gap paid $700 million in import duties, whereas Shein and Temu paid none, according to the report.
"The fact that the vast majority of products shipped from both Shein and Temu to American consumers fall under the de minimis exception means that these companies avoid customs duties—making each product cheaper—and are less likely to face the same level of customs scrutiny that other retailers might face on a formal entry," the report states.
Moody acknowledged other worries with Temu's business practices, including concerns related to U.S. consumer information.
"There are reports that Temu is gathering U.S. consumer information and passing it along to the CCP," Moody said in a statement Thursday. "These reports are alarming—not only on a consumer protection front but in regards to national security as well."
"On many fronts these reports are startling, and our offices remain committed to protecting our citizens from harmful business practices like these," the letter states.
The attorneys general of the following states co-signed the letter: Alabama, Alaska, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Virginia and West Virginia.
The attorneys general also included a list of questions for Temu and PPD Holdings, and asked for a response within 30 days.
First Coast News reached out to Temu for comment and is waiting to hear back.