Texas Sues Shein Over Alleged Toxic Products, Data Privacy Issues
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Texas Attorney General Ken Paxton has sued Chinese online retailer Shein, alleging it sells toxic products in the United States and exposes Americans’ personal data to the Chinese Communist Party (CCP).
Texas is seeking a temporary restraining order and injunction to stop Shein from continuing its alleged unlawful business practices. The lawsuit also seeks civil penalties of up to $10,000 for each alleged violation of the Texas Business and Commerce Code, along with attorneys’ fees and other monetary remedies.
“Not only is Shein harming consumers with toxic synthetic materials, but it’s also exposing Americans’ data to Communist China. This must come to an end,” Paxton said in a statement accompanying his lawsuit on Feb. 20.
“Access to affordable, in-demand clothing, children’s toys, and products should not have to come at the cost of the health and security of Texans.”
Paxton said his legal actions aim to protect Texans.
“In Texas, we will use every tool at our disposal to protect Texans from China’s influence and put America First,” he said.
Shein was founded in China in 2008 and is currently headquartered in Singapore. In 2023, its reported revenue in the United States was an estimated $32.5 billion.
“Shein’s rapid growth into an e-commerce giant is built on a foundation of omission and deception, and the billions of dollars in revenue Shein has received has come at the expense of Texans’ health and privacy. The State of Texas brings this suit to put a stop to Shein’s two-pronged assault on Texas consumers,” the complaint stated.
The complaint alleges that Shein’s products have repeatedly undergone independent testing, which found that they contain “toxic chemicals at levels far exceeding safety standards.”
“The danger does not stop at clothing though; affordable toys marketed to children are equally laden with toxic chemicals and heavy metals,” the complaint stated.
Regarding data privacy, the complaint alleges that Shein’s privacy policy fails to disclose that consumer data may be accessible to the CCP.
“Chinese national intelligence, cybersecurity, and data laws authorize the CCP to compel Chinese companies like Shein to provide access to consumer data at any time,” the complaint stated. “Moreover, CCP laws require Chinese tech companies like Shein to build their networks and applications in ways that provide the CCP with direct access to consumer data.
“A Texas consumer reading Shein’s Privacy Policy would have no way of knowing this.”
In response to an email inquiry from The Epoch Times on Feb. 24, a Shein spokesperson said, “We strongly disagree with the allegations in the complaint and will prove our position in court.
“At SHEIN, we take our responsibilities to our customers seriously and we are committed to providing a safe, secure, and reliable shopping experience.
“Like Attorney General Paxton, we are dedicated to protecting the health and personal information of Texans and all of our customers, and remain focused on maintaining our high standards for product safety and data security.”
