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Temu, the questionable Chinese e-commerce huge seeking to handle Amazon, is going back to the huge video game on Sunday with a Super Bowl advertisement that legislators are getting in touch with Paramount Global and CBS not to run.
The business, owned by PDD Holdings, increased to prominence in 2015 after it ran an advertisement throughout the huge video game simply a couple of months after it was established.
Last year’s ad promoted Temu’s low costs and welcomed customers to store “like a billionaire.” The multi-million dollar financial investment put Temu on the map and by the end of 2023, it was theNo 1 most-downloaded app in the U.S. with regular monthly active users topping 51 million this January, up almost 300% year over year, according to information from SensorTower
The specifics of this year’s advertisement have not been exposed, however currently it’s ruined in debate.
The business is seeking to win over U.S. buyers by being the next finest “everything store” with lower costs than rivals, however legislators state it utilizes servant labor in its supply chain and spies on its clients.
On Wednesday, 11 Republican legislators sent out a letter to the CEOs of CBS, which is airing the Super Bowl, and moms and dad business Paramount advising them not to run the ad.
“Since last year’s Super Bowl, Congress, through the House Select Committee on the Chinese Community Party, has uncovered alarming findings that indicate Temu has a pattern of noncompliance towards illicit products entering the United States market,” the missive read.
“Specifically, Temu ‘does not have any system to ensure compliance with the Uyghur Forced Labor Prevention Act (UFLPA). This all but guarantees that shipments from Temu containing products made with forced labor are entering the United States on a regular basis, in violation of the UFLPA,'” it states, mentioning the House committee report.
Allowing Temu’s industrial to air “would be a touchdown for the Chinese Communist Party against the home team,” the letter specified.
The letter was sent out byRep Carol Miller, R-W.V., and signed byReps 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 Steel, R-Calif, Beth Van Duyne, R-Tex, James Baird, R-Ind and Mike Carey, R-Ohio
Paramount and CBS decreased to comment.
Labor accusations
Temu, in addition to Shein and other garments merchants with a production existence in China, has actually been under congressional examination from the House Select Committee on the Chinese Communist Party given that May.
While cotton and other basic materials that can be traced to required labor is an issue throughout the whole fashion business, Shein routinely supplies information on how frequently prohibited cotton is discovered in its clothing and releases the outcomes of the audits it carries out on its makers. Other merchants likewise release audit outcomes.
Temu has yet to supply such information openly.
“Company officials lazily point to boilerplate terms and conditions asking suppliers not to use forced labor, but Temu does not conduct audits and has no compliance system to prevent supporting atrocities,” committee member, Congressman Blaine Luetkemeyer, R-Mo, stated in a Friday publication. “The company even admitted it ‘does not expressly prohibit third-party sellers from selling products based on their origin in the Xinjiang Autonomous Region’ and completely disregards the Uyghur Forced Labor Prevention Act.”
In a declaration to CNBC, Luetkemeyer called Temu’s advertisement “sickening.”
“Some people watch the Super Bowl for the commercials as much as the game. It’s sickening to think a company built on slave labor with close ties to the Chinese Communist Party is going to make a direct appeal to millions of Americans all at once,” statedLuetkemeyer “I hope it only draws attention to the sinister background of both Temu and Pinduoduo if and when people see it. A flashy advertisement for the site’s cheap products is lipstick on the ugliest pig around.”
In reaction, a Temu representative informed CNBC its requirements and practices surrounding making use of required labor are “no different” from significant e-commerce gamers like “Amazon, eBay and Etsy” and the accusations “are completely ungrounded.”
“Before setting up their stores and listing products on Temu, every seller has to sign an agreement. This document stands as a pledge to maintain lawful and compliant business operations, and adhere strictly to the legal standards and regulations of their specific markets,” the representative stated.
“The use of forced, penal, or child labor is strictly prohibited. Employment by all our merchants and suppliers must be strictly voluntary. They shall respect the freedom of association and workers’ rights to collectively bargain. Temu’s merchants, suppliers, and other third parties must pay their employees and contractors on time and must comply with all applicable local wage and hours laws.”
