Texas Attorney General sues Shein for selling toxic products & exposing Texans data to the CCP

Attorney General Ken Paxton has filed a lawsuit against Chinese fashion giant Shein for allegedly selling toxic products to consumers and compromising their data privacy.

The fifth anti-CCP lawsuit that Paxton filed over the course of four days argues that Shein US Services LLC and its related companies are using “deceptive practices”, including knowingly selling ultra-cheap, potentially harmful products to consumers to support the growth of its multi-billion dollar company.

The lawsuit follows an investigation launched by Paxton last December over unethical labor practices by Shein and a formal investigation launched by the European Union (EU) over the potential breaches of digital law, including the sale of childlike sex dolls and illegal weapons. 

According to the attorney general’s office, independent laboratory tests have repeatedly found that garments sold by Shein, including apparel designed for newborns, pregnant women, and schoolchildren, contain toxic substances at levels that exceed established safety limits.

In addition, the lawsuit alleges that toys and other children’s products sold on the platform that were tested were also found to be “laden with hazardous toxic chemicals and heavy metals,” bringing potential health hazards into Texan homes. The complaint filed by Paxton argues that the ultra-fast fashion giant presents itself as fashionable, affordable, and socially conscious, while allegedly relying on cost-cutting practices that compromise product safety. 

Instead of prioritizing safer materials and clear labeling, including the proper disclosure of the possible presence of harmful chemicals, Shein is accused of focusing on rapid production, high sales volume, and profit, leaving consumers to bear the potential health consequences. 

Next to product safety concerns, the lawsuit also challenges Shein’s handling of consumer data. The attorney general claims Shein acts as a “data siphon,” collecting and passing on personal information to the Chinese Communist Party. As Shein operates partly in China, the complaint argues that American consumer data, including names, contact details, purchase history, and possibly financial information, could be accessed under Chinese law.

If the court agrees that these actions violated the law, the financial consequences against Shein could be significant. The DTPA allows penalties of up to 10,000 US dollars per violation, with much higher fines, up to 250,000 US dollars per violation, when older consumers are affected. Given Shein’s large customer base and high sales volume, the total penalties could add up quickly if widespread violations are proven.

“This is the fifth lawsuit I’ve filed against companies tied to the Chinese Communist Party in four days,” said Paxton in a statement. “The reasons are simple: In Texas, we will use every tool at our disposal to protect Texans from China’s influence and put America First.”

Shein has stated that it “strongly disagrees” with the allegations put forward in the complaint and is ready to prove its 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.”

A spokesperson for Shein told Texas Scorecard, “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.”