In a recent and ongoing series of safety inspections conducted by the Seoul Metropolitan Government, numerous products from major e-commerce platforms including Shein and AliExpress were found to contain hazardous levels of toxic substances. These findings raise significant concerns about the environmental and consumer health impacts of these widely used platforms, particularly as they continue to expand their market presence in the United States and globally.
Alarming Findings from Seoul’s Safety Tests
Seoul authorities have been conducting weekly inspections of products sold by platforms including Shein, Temu, and AliExpress. The latest findings from these inspections are alarming. Among Shein products tested, including children’s shoes, leather bags, and belts, several contained extremely high levels of phthalates, a chemical used to soften plastics. One pair of shoes contained phthalate levels 428 times above the permitted limit, while three bags had levels 153 times higher than acceptable. A children’s watch contained lead levels 278 times above the permitted limit, with chromium and nickel levels also exceeding safe limits. A children’s necklace from AliExpress showed lead levels 1.2 times above the standard.
Contamination is widespread. Seoul authorities have inspected 93 products overall, finding nearly half to contain toxic substances. These items include children’s watches, coloring pencils, and numerous other accessories.
Environmental and Health Impacts
The presence of high levels of toxic substances in consumer products poses severe risks to both the environment and public health. Phthalates, widely used in various products, have been linked to hormone disruptions, obesity, heart disease, cancers, and fertility problems. Lead exposure can disrupt the reproductive system and increase cancer risks, while chromium and nickel are associated with dermatological toxicities, respiratory irritation, allergies, and cardiovascular diseases.
Regulatory Actions and Future Inspections
The European Union has responded to these safety concerns by adding Shein to its list of digital firms subject to stricter safety rules, particularly for protecting consumers from unsafe products. Seoul authorities plan to continue their inspections, extending their tests to include children's leather goods, food containers, and hygiene products in the coming months.
Shein's Rapid Growth and Market Penetration
Shein, headquartered in Singapore, has become a dominant force in the fast fashion industry, capturing 50% of the U.S. market share by November 2022, up from just 12% in January 2020. The company's appeal, especially to Gen Z consumers, is driven by aggressive social media marketing and influencer collaborations. In 2023, Shein reported approximately 172.3 million users worldwide and generated an estimated $32.5 billion, a 43% increase from the previous year.
Temu and AliExpress Expansions
Temu, which launched in the U.S. in September 2022, quickly became the most downloaded app in the country, boasting over 80 million active users by September 2023. U.S. consumers spend an average of 22 minutes per day on the Temu app, double the time spent on Amazon, indicating high user engagement thanks in great part to its gamification features designed to keep users scrolling for deals. Temu's gross merchandise volume reached $15.1 billion in 2023, and the platform has expanded to over 40 countries.
AliExpress, a subsidiary of Alibaba Group, maintained a strong global presence with approximately 421.8 million users by the end of 2023, particularly popular in Europe and Latin America.
Enhanced Protections Needed
The findings from Seoul's safety inspections underscore the urgent need for enhanced regulatory oversight and stricter safety standards for e-commerce platforms like Shein, Temu, and AliExpress. As these companies continue to grow and capture significant market shares in the U.S. and globally, their environmental and health impacts cannot be ignored. Ensuring consumer safety and environmental protection must become a priority in the ongoing evaluation of these platforms' business practices.
