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Shein Boosts Product Safety Efforts as It Eyes London IPO

BusinessShein Boosts Product Safety Efforts as It Eyes London IPO

Shein is intensifying its efforts to improve its public image as the fast-fashion giant prepares for a potential London IPO later this year. In a recent announcement, the company detailed its product safety measures, sustainability initiatives, and the launch of a new nonprofit foundation. The timing comes just a week after its first product safety recall in the U.S. since 2021.

According to Shein, the company conducted over 2 million product safety tests last year in collaboration with industry-leading labs such as Bureau Veritas and Intertek. Vendors are required to submit compliance documentation for regulated items like toys, baby products, medical devices, and electronics. The company also reported terminating more than 260 marketplace sellers in the past year for failing to meet compliance standards.

Shein’s latest product recall involved more than 300 hair dryer brushes that posed electrocution or shock hazards. The recalled Teckwe Hair Dryer Brush closely resembled a high-end Dyson model. While no injuries were reported, Shein offered full refunds to affected customers. The company emphasized that it conducts safety tests on its products and carries out randomized risk-based testing on third-party marketplace items before listing them, an approach that is not standard in the online retail industry.

Product safety concerns are not the only issue Shein faces as it moves toward a London IPO. The company is also under scrutiny for its supply chain practices, particularly regarding allegations of forced labor. Earlier this month, U.K. lawmakers criticized Shein’s legal representatives for refusing to answer questions about whether the company’s products contain cotton sourced from China’s Xinjiang region, an area linked to human rights violations against Uyghur communities.

During a British parliamentary hearing, Shein’s general counsel for Europe, Yinan Zhu, repeatedly avoided addressing questions on whether the company’s suppliers source raw materials from Xinjiang. When asked about the presence of forced labor in the region, Zhu responded that Shein complies with the laws and regulations of the countries where it operates, declining to engage in what he termed a “geopolitical debate.”

The response left lawmakers deeply dissatisfied, with Committee Chairman Liam Byrne expressing “zero confidence” in the integrity of Shein’s supply chain. Byrne criticized the company’s reluctance to answer basic questions, calling it “bordering on contempt.”

Shein had previously claimed in 2023 that it had stopped sourcing cotton from China while pursuing a U.S. IPO. However, the company did not make similar assurances during the recent U.K. hearing, raising further concerns among regulators and lawmakers.

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