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Fast fashion giants Shein and Temu subject to investigation after allegedly stealing US designs: 'Sophisticated and deceptive fakes'

The more scrutiny, the more chance that authorities will take major steps to curb their illegal acts.

U.S. Senator Tom Cotton says America has a "golden opportunity" to hit back at fast fashion giants Shein's and Temu's alleged intellectual property (IP) theft.

Photo Credit: Depositphotos.com

U.S. Senator Tom Cotton says America has a "golden opportunity" to hit back at fast fashion giants Shein and Temu's alleged intellectual property (IP) theft.

What's happening?

The BBC reported on Cotton's bid to intensify scrutiny on the two brands' business practices. It's no coincidence that Cotton's renewed efforts are taking place at a vulnerable time for Shein and Temu. 

Cotton asserted in a letter to U.S. Attorney General Pam Bondi that thanks to a recent change in tariff laws, millions of shipped goods are sitting idly in American warehouses. That's due to the end of the de minimis exemption. That measure previously spared packages valued under $800 from tariffs and more stringent customs checks, as PBS explained.

It also opened up a window to block what Cotton called "sophisticated and deceptive fakes" from reaching the market if they violate laws. A probe could uncover further evidence of counterfeit goods and IP theft that the Information Technology and Innovation Foundation (ITIF) revealed in August.

Why are fast fashion counterfeits important?

Individuals like Austin-based fashion designer Cassey Ho say that design theft results in significant revenue losses and damage to their brand, as InvestigateTV reported. Fast fashion giants can systematically steal their designs, undercut their prices, and rob them of a hit design almost instantly. 

Meanwhile, fast fashion isn't just bad for independent designers — it's also highly damaging to the planet and workers. Since the clothes aren't designed to last, after only a few wears, they can end up in planet-heating landfills and shed damaging microplastics. 

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It's no wonder that Shein faced a $1.16 million fine from Italian authorities for greenwashing

Moreover, fast fashion companies are also reportedly under fire for exploitative labor practices, including 75-hour workweeks, child labor, and below-market pay. The BBC noted that Texas Attorney General Ken Paxton is calling for his own investigation into Shein's labor practices and alleged use of unsafe materials.

What's being done about counterfeit fast fashion?

The more heat on the business practices of fast fashion, the more chance that authorities will take major steps to curb any illegal acts. When it comes to allegations of design-stealing, if U.S. regulators can show a clear pattern, they can take more drastic steps like suing the companies or banning their imports.

Consumers can do their own part by supporting independent designers and skirting fast fashion. Doing so will not only help smaller businesses but also provide higher-quality clothing that will stay in your closet instead of heading to the trash.

The gains from buying fast fashion are short-lived from a consumer's standpoint, as the low-quality goods inevitably fall apart quickly

Unfortunately, the long-term ramifications of brands ripping off designers and workers while contributing to the textile waste problem will live on for generations to come.

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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