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US official opens investigation into fast-fashion giant Shein over concerns of extreme law abuse: 'May pose risks to millions of American consumers'

"[We] deserve to know."

Texas' Attorney General Ken Paxton has opened an investigation into Shein over possible violations of state labor and consumer protection laws.

Photo Credit: iStock

Fast-fashion brands have been under scrutiny for years for pollution, wasteful practices, and poor labor standards — and now Shein, one of the most powerful companies in the industry, is facing a new legal challenge in the U.S.

According to the Houston Chronicle, Texas Attorney General Ken Paxton has opened an investigation into Shein over possible violations of state labor and consumer protection laws. The question was whether the company uses toxic chemicals and if internal data-collection practices put shoppers at risk. 

What's happening?

The Chronicle reported Paxton's office announced the investigation on Monday, stating that Shein violated labor laws and misled consumers about the safety and sourcing of its products. 

"Texans deserve to know that the companies they buy from are ethical, safe, transparent, and not exploiting workers or selling harmful products," Paxton said in the press release, adding that the company "may pose risks to millions of American consumers."

Shein has been scrutinized in the past for its labor practices, including a 2021 investigation by Swiss watchdog group Public Eye that found factory workers in China were working 75-hour weeks in deplorable conditions. The Chronicle also noted that Shein acknowledged in 2024 instances of child labor in parts of its supply chain. 

Why is calling out fast-fashion important?

Fast fashion has an enormous environmental footprint, and global agencies have repeatedly warned that low-cost, high-volume production contributes heavily to waste and planet-warming gas output. According to UNEP, the fashion industry generates between 2% and 8% of global carbon pollution each year because of the heavy use of synthetic materials, like virgin polyester that relies on oil. And in 2023 a report found that Shein produced 6.3 million tons of planet-warming gas in a year due to the reliance on the virgin polyester. 

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The report also notes that Shein has been called out in a CBC investigation for using toxic chemicals in their products; one toddler jacket contained 20 times the level of lead considered safe by Canadian health officials. 

A couple of years after the CBC investigation, Shein came under fire for making misleading claims about its sustainability efforts by overemphasizing their "green" clothing and then not telling customers the items can't be recycled. 

What's being done about Shein's deceptive practices?

Companies and other entities continue to spotlight Shein's irresponsible practices. In a separate instance, thredUP publicly criticized Shein's business model, saying it relies on extreme overproduction and waste, which amplifies both labor and abuse and environmental damage. 

Additionally, Chinese cybersecurity authorities and American lawmakers have both looked into the data collection practices at Shein after there had been multiple user privacy violations. 

To avoid deceptive environmental claims, learning how to identify greenwashing can help people steer towards brands that are more accountable. You can also support secondhand and slow-fashion alternatives. Thrifting can save you as much as an average of $1,700 per year while lowering demand for fast fashion.

What should the government do about the fast fashion industry?

Set strict regulations 🚫

Incentivize sustainable options 💰

Use both regulations and incentives 🏛️

Nothing 🙅

Click your choice to see results and speak your mind.

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