What are Temu and Shein?:

Shein and Temu both sell various goods at extremely cheap prices. Shein offers fashion pieces, whereas Temu sells anything and everything. Both companies have sparked interest all across the world, especially within the contiguous United States. According to Global Affairs, Temu is the top free app in Apple’s app store, meanwhile, Shein holds the title of the second most downloaded app in the United States. 

When it comes to the proprietorship of these two influential companies, the ownership structure is not that of a typical business. Temu is the U.S. subsidiary of a Chinese e-commerce site Pinduoduo. Shein was founded by Chinese billionaire Chris Xu who operates the company by Roadget Business Pte, according to Reuters. 

Why are prices so low?

Shein and Temu keep their prices low on manufactured goods by a U.S. shipping provision called “de minimis exception.” This term is a loophole in international shipping and packages entering the mainland United States. Any package with a retail value of less than $800 waives duty fees. According to a June congressional report, they paid no duty fees to the U.S. Government in 2022. Meanwhile, H&M, another fast fashion company, paid $205 million.

The second reason why prices are extremely low on these websites comes down to using garment workers and paying for very cheap labor, particularly in Southeast Asia. Many garment workers who work for these two companies are paid a low wage, working long and grueling hours, without a legal employment contract. 

Katebi, an affluent journalist in the fashion industry, spoke with garment workers in Cambodia, India, and Indonesia and said: “The sheer volume of clothes that fast fashion requires to meet their 52-season-a-year calendar and the quotas that are placed on garment workers to create these clothes are humanly impossible.”  The fashion industry is very fast-paced with new clothing styles being in fashion while old and retro styles coming back alive in the current fashion industry.

Data Leaks and Bank Information: 

Noch Technology 

The risk of data mining emerged on March 4th, 2023, when Temu’s sister company, Pinduoduo, was discovered inserting malware into its system for user surveillance. This led to widespread suspicion that Temu harbored the same malware. Temu responded to allegations of malware and spyware, Barrons, “We do not and will not sell client data.” Despite this, several states remain skeptical of Temu’s claims. WPTV reported that a group of plaintiffs from multiple states filed a class action lawsuit against Temu and its parent company, PDD Holdings Inc., alleging that the app breaches users’ privacy rights by clandestinely collecting their data without effective consent options.

The Mysterious Stank 

Many customers upon receiving and opening their package report a strange smell. James Cordaro, a frequent customer of Temu, was asked about the odor: “I opened the package and was unpleasantly surprised. It smelled terrible, it smelled like a sweatshop, it took like 2 months for the smell to go away.” Playbite Many find that the smell is coming from the materials used to to make the goods in Temus factories. The cheap materials that are used allow Temus to keep its low prices. Temu’s packaging also contributes as it’s usually a plastic bag wrapped with tape, trapping the odors inside the package from being able to escape. 

The Dangerous Side of Both Companies:

The low prices and constant availability of Shein and Temu products are convenient, attractive qualities one might look for in a business, but at what cost?

 Time Magazine first states that carbon emissions from fast fashion factories have been contributing to roughly 10 percent of the world’s carbon emissions: “As a result, [Shein] leaves about 6.3 million tons of carbon dioxide a year in its trail—a number that falls well below the 45% target to reduce global carbon emissions by 2030, which the U.N. has said is necessary for fashion companies to implement to help limit global warming.” 

Meanwhile, GreenPeace.com reports on Temu’s carbon footprint. While the company has failed to release any data on their environmental impact, it is known that they send an estimated 1 million packages around the world, daily. 

Both companies’ contribution to hyper-consumerism and the climate crisis is absolutely shocking, similar to the way they treat their employees. Time Magazine’s article covers the topic of worker’s rights as well. It has been reported that Shein employees are working up to 75 hour shifts with little to no breaks or time off. Time explores the documentary, Inside the Shein Machine, a documentary in which hidden cameras were placed in Shein’s sweatshops for a closer look at the conditions and treatment of workers. They state, “In one factory, they made a daily base salary of $20, which would then be docked by $14 if any garments had mistakes.” Furthermore, long shifts include dangerous working conditions, with few safety protocols or emergency exits. 

In the past similar conditions have resulted in the deaths of workers. For example, the Triangle Shirtwaist Factory fire, a fire in which underpaid workers were trapped in a building, forced to make clothes for long shifts, with no access to emergency exits. Once the fire had been put out, 146 workers had been killed.

As a result of these conditions, detrimental situations and effects are probable, putting workers, as well as the environment, at risk.