After multiple allegations of forced labour, scrutiny of major e-commerce retailers has intensified both in the United Kingdom (UK) and in the European Union (EU).
In response to growing concerns over fair competition and ethical business practices, Shein and Temu’s executives were summoned by the UK’s Parliamentary Business and Trade Committee to address questions regarding their product sourcing practices and labour rights compliance, particularly in China’s Xinjiang province, where serious human rights abuses have been reported against the Uyghur population and other Muslim minorities, as reported by OHCHR Assessment of human rights concerns in Xinjiang. Executives repeatedly refused to confirm whether their products contained cotton sourced from China, particularly in light of Shein’s plans to be listed on the London Stock Exchange.
In the same week, the European Union announced an increase in customs checks on goods shipped directly by e-commerce retailers like Temu and Shein to EU consumers. This move aims to ensure fair competition and product safety by tightening controls on online purchases that present “significant safety hazards and risks of non-compliance”, the European Commission. The precise list of products will be determined in agreement with member states.
These developments come at a critical moment as European Commission President Ursula von der Leyen prepares to launch the Omnibus package this month, potentially weakening key corporate accountability measures in the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD), with likely implications for the Forced Labour Ban.
La Strada Internacional has co-signed this CSO joint statement on the EU Omnibus standing alongside civil society organisations calling for stronger protections for human rights, corporate responsibility, and environmental safeguards. The European Commission’s commitment to a safe and sustainable e-commerce market is an important recognition of the critical need for business accountability.
Read more: Why the Proposed Omnibus Law Could Undermine Corporate Accountability