Texas Attorney General Ken Paxton filed a lawsuit against Shein US Services LLC for selling toxic products and exposing consumers' personal data to the Chinese Communist Party. The lawsuit seeks monetary penalties under the Texas Deceptive Trade Practices Act. This action is part of a broader effort to protect Texans from health risks and CCP influence.
Shein may face monetary penalties up to $10,000 per DTPA violation, with higher amounts for targeting elderly consumers, and must cease deceptive practices.
In-house legal teams should review vendor and supplier agreements for product safety and compliance clauses, ensuring they mandate certifications for toxic substance testing and compliance with applicable consumer product safety laws. Customer-facing terms and privacy policies must be examined for data handling provisions, particularly any clauses permitting data sharing with foreign governments or entities like the Chinese Communist Party. Data processing agreements (DPAs) should include strict data transfer restrictions, prohibitions on government-requested disclosures without legal process, and enhanced audit rights. Contracts may need amendments to require explicit consent for cross-border data transfers, implement data localization where required, and add robust breach notification obligations covering government-accessed data incidents.
Entity
Shein US Services LLC
Also known as: Shein
Industry
RetailOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-files-fifth-anti-ccp-lawsuit-four-days-suing-global-fast-fashion-giant
Petition 15
https://www.texasattorneygeneral.gov/sites/default/files/images/press/Petition_15.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
$1.0B
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