EU commissioner shocked Michael McGrath by dangers of some goods sold by Shein and Temu
With 12m low-value parcels each day coming into the EU from online retailers outside the bloc, Michael McGrath has vowed to crack down on the sale of goods that blatantly break the law.
He is waiting for the imminent results of an EU-wide secret shopper operation to further test evidence already gathered that Chinese retailers are bypassing EU laws.
Among the worst examples Mr McGrath came across were baby soothers with beads that fall off easily, which pose a choking hazard because they did not have the regulation size hole to enable a baby who did swallow one accidentally to continue to get air.
Among other goods cited by MEPs in a report released this month include children's raincoats with toxic chemicals, sunglasses with no UV filter and kids shorts with draw strings longer than regulation length that cause a trip hazard.
They also found cosmetics containing butylphenyl methylpropional, also known as Lillal, which is listed as a chemical of 'very high concern' by the EU and has been banned since 2022 over concerns that it affects fertility and fetal development.
EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath. File Picture: Shane O'Neill
'I am shocked by it, and I think we have a duty to protect European consumers,' Mr McGrath said.
National consumer protection authorities send out rapid alerts across the EU warning of unsafe non-food products as part of a service, Safety Gate, which is also open to consumer complaints.
Last year, Safety Gate received a record high of 4,137 alerts with more than a third relating to cosmetics, ahead of toys, electrical appliances, auto and chemical products.
While consumer groups are concerned about safety, Mr McGrath is also worried that the platforms which have exploded in popularity in the last two years are damaging local businesses through unfair competition.
The growth is extraordinary, and it has placed enormous pressure on the systems at member state level.
'I am determined that we step up our enforcement of our product safety laws and our consumer protection rules," he said.
"It's not only about protecting consumers, but there is a very serious level playing field issue here for European businesses, because they are expected to compete with sellers who are not complying with our rules."
'They are incurring significant costs in Europe to comply with our requirements, and they should not be expected to compete with those who are not doing the same.'
EU figures show 12m low-value items coming into the bloc a day, amounting to 4.6bn consignments under €150 for 2024 – double that of 2023 and three times as many as 2022.
Among the moves the EU is considering is an abolition of the €150 duty-free threshold and the introduction of a handling fee for each package which may deter low-value purchases and help pay the cost of extra customs investigations.
The move would echo the situation in the US, where Donald Trump signed an executive order to end the $800 duty-free threshold in an assault on the Chinese sellers. American buyers have had to pay an additional 30% tax or a minimum of $50 an item after 1 June this year.
Also possible is the creation of a EU-wide customs authority to cope with the systemic issues.
Mr McGrath said it 'remains to be seen' if the subject will be raised at an EU-China summit in Beijing on 25 July but he plans to address it directly himself.
'It will certainly be engaging directly with Chinese authorities and we will visiting later on this year,' he said.
Shein said it was investing $15m this year in compliance and safety initiatives including 2.5m product and safety quality tests and has partnerships with 15 testing centres. It said it had removed 500 vendors since the launch of its marketplace.
A spokesperson said: 'Earning and maintaining the trust of our consumers is paramount, and we are fully committed to ensuring the products we offer are safe and compliant."
'All of our vendors are required to comply with Shein's code of conduct and stringent safety standards, and must also abide by the relevant laws and regulations of the markets where we operate.'
Temu has been approached for comment.
- The Guardian
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