Janelle Irwin Taylor
Sen. Jay Collins and Rep. David Borrero have filed legislation seeking to protect consumers from bad actors in Chinese e-commerce and retailers from other countries of concern.
Those sellers have, in some cases, been found to peddle unvetted, potentially dangerous and sometimes counterfeit products into U.S. markets. The bills (SB 1090, HB 1023) specifically target the People’s Republic of China, Russia, Iran, North Korea, Cuba, Venezuela and Syria, as well as any other nations “under significant control of such foreign country of concern.”
While not specifically named, the legislation targets Chinese discount retailers such as Temu, Shein and Alibaba. It would require sellers to, prior to a sale or other transaction, “disclose to a consumer in a clear and conspicuous manner the general location of the online seller or online platform if the online seller or online platform is located in or conducts business from a foreign country of concern,” according to the Senate bill.
Additionally, the legislation would require online retailers from countries of concern to place proceeds from sales and other transactions with Florida-based consumers into a U.S.-based escrow account. Sellers would be required to leave proceeds from Florida sales in that escrow account for at least 120 days before being transferred to the seller.
Under the legislation, violations would run afoul of the Florida Deceptive and Unfair Trade Practices Act, which protects consumers from dishonest business practices such as false advertising or misleading sales pitches. The state statute allows for civil penalties for up to $10,000 per violation.
Similar legislation was filed in the Senate last year, but died in its first committee. There was no House companion.
The push to crack down on nefarious overseas sellers like Temu and Shein is not unique to Florida. President Donald Trump and his administration have also been weighing whether to add both retailers to the U.S. forced labor list, according to Semafor.
Temu, in a statement to the outlet, said it “strictly prohibits the use of forced labor” and has a code of conduct barring “all forms of involuntary labor.” Shein similarly told the outlet it has “made it our priority to implement best in class standards.”
The U.S. forced labor list, under the Department of Homeland Security, was established in 2021 through the Uyghur Forced Labor Prevention Act.
Meanwhile, the U.S. Postal Service (USPS) briefly earlier this month said it would no longer accept parcels from China and Hong Kong after the Trump administration imposed an additional 10% tariff on Chinese imports that included an exemption for small value parcels, which would apply to value sites like Temu and Shein. However, USPS reversed the decision just a day later, leaving such imports open and available in the U.S.
The tariffs on China were aimed at reducing the flow of fentanyl into the U.S. from Chinese sources by imposing fiscal penalties that could force China to take action.
But the legislation from Collins and Borrero isn’t necessarily tied to fentanyl. The U.S. Patent and Trademark Office (USPTO) estimates that counterfeit products, such as faulty electronics, account for 350,000 serious injuries annually, as well as 70 deaths. But the carnage is lucrative, with the USPTO estimating the global sale of counterfeit goods at a $2 trillion industry, more than illegal drugs or human trafficking.
Critics of low-cost sites like Temu and Shein point to low-quality merchandise that is advertised one way, but received another. Think clothing for adults that arrives barely large enough for a child, or kitchen gadgets that look like awesome life hacks, but turn out to be cheap, useless plastic.
Do a web search for “Temu” for “fake reviews” and notice the myriad complaints about product quality. Perhaps worse though are the potential scams affiliated with both Temu and Shein, including “brushing” scams. Such scams include receipt of packages that weren’t ordered, then used to write a fake review of the products on the recipient’s behalf.
Other documented potential threats include selling U.S. consumer data and other e-commerce related fraud.
Neither the Senate nor House bill have been referred to committee. Both were filed this week.
If passed and signed by Gov. Ron DeSantis the legislation would take effect July 1.
