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Temu, the controversial Chinese language e-commerce big trying to tackle Amazon, is returning to the massive recreation on Sunday with a Tremendous Bowl advert that lawmakers are calling on Paramount World and CBS to not run.
The corporate, owned by PDD Holdings, skyrocketed to prominence final yr after it ran an advert through the large recreation only a few months after it was based.
Final yr’s commercial touted Temu’s low costs and invited customers to buy “like a billionaire.” The multi-million greenback funding put Temu on the map and by the top of 2023, it was the No. 1 most-downloaded app within the U.S. with month-to-month energetic customers topping 51 million this January, up almost 300% yr over yr, in keeping with knowledge from Sensor Tower.
The specifics of this yr’s advert have not been revealed, however already it is marred in controversy.
The corporate is trying to win over U.S. buyers by being the subsequent greatest “every part retailer” with decrease costs than opponents, however lawmakers say it makes use of slave labor in its provide chain and spies on its prospects.
On Wednesday, 11 Republican lawmakers despatched a letter to the CEOs of CBS, which is airing the Tremendous Bowl, and mum or dad firm Paramount urging them to not run the commercial.
“Since final yr’s Tremendous Bowl, Congress, via the Home Choose Committee on the Chinese language Group Occasion, has uncovered alarming findings that point out Temu has a sample of noncompliance in the direction of illicit merchandise coming into the US market,” the missive learn.
“Particularly, Temu ‘doesn’t have any system to make sure compliance with the Uyghur Compelled Labor Prevention Act (UFLPA). This all however ensures that shipments from Temu containing merchandise made with compelled labor are coming into the US regularly, in violation of the UFLPA,'” it says, citing the Home committee report.
Permitting Temu’s industrial to air “could be a landing for the Chinese language Communist Occasion in opposition to the house crew,” the letter acknowledged.
The letter was despatched by Rep. Carol Miller, R-W.V., and signed by Reps. Byron Donalds, R-Fla., Jim Banks, R-Ind., Nicole Malliotakis, R-N.Y., Christopher Smith, R-N.J., Pete Stauber, R-Minn., Ronny Jackson, R-Tex., Michelle Metal, R-Calif., Beth Van Duyne, R-Tex., James Baird, R-Ind. and Mike Carey, R-Ohio.
Paramount and CBS declined to remark.
Labor allegations
Temu, together with Shein and different attire retailers with a producing presence in China, has been beneath congressional investigation from the Home Choose Committee on the Chinese language Communist Occasion since Might.
Whereas cotton and different uncooked supplies that may be traced to compelled labor is an issue throughout your entire style trade, Shein usually offers knowledge on how typically banned cotton is present in its garments and publishes the outcomes of the audits it conducts on its producers. Different retailers additionally publish audit outcomes.
Temu has but to offer such knowledge publicly.
“Firm officers lazily level to boilerplate phrases and situations asking suppliers to not use compelled labor, however Temu doesn’t conduct audits and has no compliance system to stop supporting atrocities,” committee member, Congressman Blaine Luetkemeyer, R-Mo., stated in a Friday bulletin. “The corporate even admitted it ‘doesn’t expressly prohibit third-party sellers from promoting merchandise primarily based on their origin within the Xinjiang Autonomous Area’ and utterly disregards the Uyghur Compelled Labor Prevention Act.”
In a press release to CNBC, Luetkemeyer referred to as Temu’s advert “sickening.”
“Some individuals watch the Tremendous Bowl for the commercials as a lot as the sport. It is sickening to suppose an organization constructed on slave labor with shut ties to the Chinese language Communist Occasion goes to make a direct enchantment to thousands and thousands of People suddenly,” stated Luetkemeyer. “I hope it solely attracts consideration to the sinister background of each Temu and Pinduoduo if and when individuals see it. A flashy commercial for the location’s low cost merchandise is lipstick on the ugliest pig round.”
In response, a Temu spokesperson informed CNBC its requirements and practices surrounding the usage of compelled labor are “no completely different” from main e-commerce gamers like “Amazon, eBay and Etsy” and the allegations “are utterly ungrounded.”
“Earlier than establishing their shops and itemizing merchandise on Temu, each vendor has to signal an settlement. This doc stands as a pledge to take care of lawful and compliant enterprise operations, and cling strictly to the authorized requirements and laws of their particular markets,” the spokesperson stated.
“Using compelled, penal, or baby labor is strictly prohibited. Employment by all our retailers and suppliers have to be strictly voluntary. They shall respect the liberty of affiliation and staff’ rights to collectively discount. Temu’s retailers, suppliers, and different third events should pay their staff and contractors on time and should adjust to all relevant native wage and hours legal guidelines.”
