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Temu, the controversial Chinese e-commerce giant looking to take over Amazonreturns to Sunday’s big game with a Super Bowl ad calling for lawmakers Paramount Global and CBS not to run.
The company, owned by PDD Holdingsskyrocketed last year after launching an ad during the big game just months after it was founded.
Last year’s ad touted Temu’s low prices and invited consumers to shop “like a billionaire.” The multi-million dollar investment put Temu on the map, and by the end of 2023, it was the #1 most downloaded app in the US with monthly active users surpassing 51 million this January, up nearly 300% year over year , according to data from Sensor Tower.
Details of this year’s ad haven’t been revealed, but it’s already been marred by controversy.
The company seeks to win over U.S. shoppers by being the next best “one-stop shop” with lower prices than competitors, but lawmakers say it uses slavery in its supply chain and spying on her customers.
On Wednesday, 11 Republican lawmakers sent a letter to the CEOs of CBS, which broadcasts the Super Bowl, and parent company Paramount, urging them not to air the ad.
“Since last year’s Super Bowl, Congress, through the House Select Committee on the Chinese Community Party, has uncovered troubling findings showing that Temu has a pattern of non-compliance with illegal products entering the United States market,” the message read. .
“Specifically, Temu “has no system in place to ensure compliance with the Uighur Forced Labor Prevention Act (UFLPA). This alone guarantees that shipments from Temu containing products made with forced labor enter the United States on a regular basis in violation of the UFLPA,β it says, citing the House committee report.
Allowing Temu’s commercial to air “would be a touchstone for the Chinese Communist Party against the home team,” the letter said.
The letter was sent by Rep. Carol Miller, RW.V., and signed by Reps. Byron Donalds, R-Fla., Jim Banks, R-Ind., Nicole Malliotakis, RN.Y., Christopher Smith, RN.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 declined to comment.
Labor complaints
Temu, along with Shein and other apparel retailers with a manufacturing presence in China, is under congressional investigation by the House Select Committee on the Chinese Communist Party since May.
While cotton and other raw materials that can be traced to forced labor are a problem across the fashion industry, Shein regularly provides data on how often banned cotton is found in its clothing and publishes the results of checks it carries out on its manufacturers. Other retailers also publish test results.
Temu has yet to publicly provide such data.
“Company executives lazily indicate 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,” said committee member, of Congressman Blaine Luetkemeyer, R-Mo. Friday bulletin. “The company even admitted that it ‘does not explicitly prohibit third-party sellers from selling products based on their origin in the Xinjiang Autonomous Region’ and completely ignores the Uyghur Forced Labor Prevention Law.”
In a statement to CNBC, Luetkemeyer called Temu’s ad “disgusting.”
“Some people watch the Super Bowl as much for the commercials as for the game. It’s sickening to think that a business-based company with close ties to the Chinese Communist Party would directly appeal to millions of Americans at the same time.” Luetkemeier said. “I hope it only draws attention to the evil backgrounds of both Temu and Pinduoduo if and when people see it. A flashy advertisement for the site’s cheap wares is lipstick on the ugliest pig around.”
In response, a spokesperson for Temu told CNBC that its standards and practices regarding the use of forced labor are “no different” from major e-commerce players such as “Amazon, eBay and Etsyβ and the claims βare completely unfounded.β
“Before setting up their stores and listing products on Temu, each seller must sign an agreement. This document is a promise to maintain legal and compliant business activities and strictly comply with the legal standards and regulations of their specific markets” , the spokesperson said.
“The use of forced, penal or child labor is strictly prohibited. Employment by all our traders and suppliers must be strictly voluntary. They will respect freedom of association and the rights of workers to collective bargaining. Traders, suppliers and others Temu’s third parties Parties must pay their employees and contractors in a timely manner and must comply with all applicable local wage and hour laws.”