EU Steps Up Crackdown On Shein And Temu Over Product Safety Concerns And Unfair Competition

Concerns are mounting within the European Union over the safety and compliance of products sold by online Chinese retail giants Shein and Temu. Michael McGrath, the EU justice commissioner, has expressed shock at the level of toxicity and danger found in some products, following a recent investigation that included a secret shopper initiative across the bloc. McGrath stressed the duty to shield European consumers from online platforms bypassing established EU laws.

Goods identified during investigations included baby soothers with detachable beads posing a serious choking hazard, children’s raincoats containing toxic chemicals, sunglasses lacking adequate UV protection, and children’s shorts fitted with drawstrings exceeding regulated lengths. Cosmetics found on these platforms also contained the banned compound butylphenyl methylpropional, or Lilial, which the EU considers a chemical of very high concern due to its potential effects on fertility and foetal development.

As the popularity of these platforms surges, the EU faces unprecedented volumes of imports. Data indicate that in 2024 alone, 12 million low-value parcels per day have been imported from online retailers outside the EU, amounting to almost 4.6 billion consignments under €150—figures that have more than doubled over the past year. This sharp increase is placing pressure on national consumer protection systems and complicating enforcement of safety regulations.

To counteract these challenges, the EU is considering measures such as abolishing the €150 duty-free threshold and introducing package handling fees, echoing similar moves by the United States. The goal is both to raise additional funds for customs oversight and to discourage an influx of low-value items that are difficult to scrutinise effectively.

Safety Gate, the EU’s rapid alert system for dangerous non-food products, received a record 4,137 alerts last year, with cosmetics, toys, electrical items, and chemical goods among the most cited categories. The trend has intensified concern not only for consumer safety but also for the competitive balance with European businesses. Local retailers face higher compliance costs and regulatory burdens compared with overseas sellers who may not observe the same standards.

Both Shein and Temu have responded by highlighting investments in compliance initiatives, testing, and the removal of non-compliant vendors, insisting product safety remains paramount. Measures include millions of quality tests and partnerships with internationally recognised testing authorities in Europe.

Ahead of the upcoming EU-China summit in Beijing, enforcement of product safety and consumer protection rules remains a pressing issue. McGrath is determined to pursue direct engagement with Chinese authorities, aiming to secure a fair and safe market for European consumers and businesses alike.