UK lawmakers call Shein and Temu to answer questions regarding labor practices

UK lawmakers call Shein and Temu to answer questions regarding labor practices

The fast-fashion online retailer Shein, which aims to go public in London, is set to face a UK parliamentary hearing on January 7. The British Business and Trade Committee will question Shein, founded in China in 2008, regarding worker rights within its supply chain.

The inquiry, led by former Labour minister Liam Byrne, also involves Temu, a global online marketplace owned by Chinese e-commerce giant PDD Holdings. The investigation, launched in October, focuses on employment rights and the UK's flagship employment legislation while addressing concerns about importing products linked to poor labor practices, including forced labor.

Shein's general counsel for Europe, the Middle East, and Africa, Yinan Zhu, is listed as a witness on the committee's website. Temu representatives Stephen Heary, senior legal counsel, and Leonard Klenner, senior compliance manager, have also been invited to provide evidence.

Shein declined to comment, and Temu representatives were unavailable for immediate response. Both companies, known for selling low-cost clothing, accessories, and gadgets, have faced allegations of poor working conditions and forced labor in their supply chains. Shein maintains a zero-tolerance policy on forced labor, while Temu asserts similar prohibitions.

Originally founded in China, Shein is now headquartered in Singapore. It has rapidly expanded in markets like the US, Europe, and the UK, and is awaiting regulatory approval from both British and Chinese authorities for its London IPO, after filing with the UK's market regulator in June.

Margaret Beels, the Department for Business and Trade's director of labor market enforcement, and Independent Anti-Slavery Commissioner Eleanor Lyons, who previously raised concerns about Shein's IPO, will also testify. Executives from McDonald's UK and Ireland and supermarket chain Tesco have been called to provide oral evidence.

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