U.S. regulators call for investigation into foreign platforms
In a letter issued last month, U.S. safety commissioners Peter Feldman and Douglas Dziak expressed concerns about potentially dangerous baby and toddler products available on foreign e-commerce sites, specifically mentioning Shein and Temu. These platforms, which source products from third-party sellers in China, offer a wide range of low-priced goods, but have faced increasing scrutiny regarding the safety of certain items.
The commissioners highlighted the growing challenge of overseeing "de minimis" shipments—small-value, direct-to-consumer purchases that evade some of the stricter import regulations usually applied to larger shipments. This loophole creates difficulties for regulators attempting to enforce safety standards on products sold through these platforms. The commissioners emphasized the need for clearer expectations for both domestic and foreign sellers operating on these platforms to ensure product safety compliance.
Health Canada’s response and monitoring efforts
Health Canada acknowledged awareness of the U.S. commissioners' letter, stating that they regularly monitor domestic and international news sources, as well as reports from consumers and the industry, to track safety issues. However, they noted that the open letter did not provide enough specific product information for them to assess potential violations of Canadian laws.
Under the Consumer Product Safety Program, Health Canada requires manufacturers, importers, advertisers, and vendors to ensure their products do not pose any risk to human health or safety. Despite this, Health Canada does not actively test products before they enter the market, placing the responsibility on suppliers to comply with relevant regulations.
Health Canada has already worked with platforms like Shein and Temu in the past. For example, it recalled non-compliant children's products sold by Shein, such as sleepwear containing lead, and water balloons and bike helmets sold on Temu. Despite these efforts, Canada faces challenges similar to those in the U.S. in addressing the growing volume of goods sold through foreign platforms.
Shein and Temu’s responses to safety concerns
In response to the scrutiny, both Shein and Temu have publicly emphasized their commitment to product safety. Shein, in a statement by spokesperson Martin Reidy, noted that the company conducts random product testing and follows a strict Marketplace Services Agreement that all sellers must adhere to. Shein claimed that it has removed more than 700 marketplace sellers in 2023 alone for non-compliance with safety standards.
Temu similarly stated that it takes product safety "very seriously" and performs random product inspections before and after items are listed on the platform. According to a Temu spokesperson, sellers must sign agreements affirming their compliance with relevant safety regulations, and the platform regularly monitors customer feedback to identify and address any potential safety issues.
Both companies have pledged to cooperate with regulatory authorities and have mechanisms in place to block problematic sellers and remove unsafe products from their platforms. However, critics argue that the sheer scale of these platforms, combined with the high number of third-party sellers, makes it difficult to ensure comprehensive compliance with safety standards.
The broader implications for online shopping safety
The issue of product safety on foreign e-commerce platforms extends beyond just Shein and Temu. Online marketplaces have revolutionized global shopping by providing consumers access to a vast array of products at low prices. However, this shift has also introduced new challenges in ensuring that products meet the safety standards of the countries where they are sold.
In response to these concerns, Health Canada introduced the Canadian Product Safety Pledge, which encourages online marketplaces to voluntarily commit to improving product safety. So far, only Amazon Canada and eBay Canada have signed this pledge, which aims to enhance the detection of unsafe products and raise awareness among sellers and consumers.
According to Health Canada’s latest data, the Canada Border Services Agency flagged over 1,300 shipments in 2022-2023, resulting in 363 product inspections. Of those, 134 were found to be non-compliant, and 212 recalls were issued. The majority of recalled items were household products (29%), followed by child care-related items (15%) and sports equipment (12%). These figures highlight the ongoing need for vigilant monitoring of products entering the Canadian market through both traditional and online retail channels.
As foreign e-commerce platforms continue to grow in popularity, regulators in the U.S. and Canada are grappling with the challenges of ensuring product safety. While companies like Shein and Temu claim to have robust safety measures in place, the decentralized nature of third-party selling and the volume of products listed on these platforms complicate enforcement efforts. Consumers must remain cautious and informed, while governments must continue to adapt their regulatory frameworks to address the evolving landscape of global e-commerce. The collaboration between health authorities, online marketplaces, and regulatory bodies will be crucial in protecting consumers from unsafe products in this digital age.
source: CTV News
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