Application of Uighur Compulsory Labor Prevention Act Pushing to apply distributors for the first time With 51 Million U.S. Customers Review as a measure to ban imports.
While Chinese e-commerce company Temu is widely targeting the U.S. domestic market, reports have emerged that the U.S. Congress is pushing for a ban on Temu imports through “violation of labor laws.”
According to The Information, a U.S. tech-specialized media outlet, on the 25th (local time), some lawmakers, including Rep. Blaine Luketmyer, asked the U.S. Department of Homeland Security and other government agencies to put Temu on the Uighur Forced Labor Prevention Act (UFLPA) violator list.
On the list, Temu’s products could be banned from the U.S.
However, it is unclear if the request from the U.S. Congress will be accepted because distributors other than manufacturers have never been designated as UFLPA violators, DeInformation explained.
Temu is making a big impact in the U.S. e-commerce market, with large-scale advertising during the Super Bowl in February. It is targeting Korea and the world in addition to the United States by promoting low-cost products manufactured directly in China.
Temu, launched in September 2022, had 51 million U.S. users in January this year, up from 13 million a year ago, according to Sensor Tower data.
Temu’s parent company, Pinduoduo (PDD), has not disclosed detailed financial information about Temu, but estimates the total value of its products (GMV) covered by Temu to be between $16 billion and $17 billion.