More than one million New Zealanders, or one in four adults, have recently shopped at online retailer Temu, according to new polling released today by Kiwi aid and development agency Tearfund New Zealand. Additionally, 14% of Kiwis have made recent purchases from another ultra-fast fashion giant, Shein.

While these retailers are known for their super low prices—offering t-shirts and dresses for as little as $6—the ethical implications are raising serious concerns. Claire Gray, who has been researching the fashion industry for Tearfund for nearly a decade, said these prices raise red flags about the treatment of workers.

“Given the significant amount of work it takes to make a t-shirt and the multiple people involved, prices like these are a giant red flag that workers are being exploited,” said Gray. “When garments are this cheap, someone is paying the price.”

Tearfund, in collaboration with Baptist World Aid, reviewed the latest 2024 Ethical Fashion Report to see how companies like Temu and Shein rank in terms of protecting workers and mitigating environmental damage. The report, which surveys and scores 120 of the world’s largest fashion brands, revealed that the average score across brands was 31 out of 100. Shein scored 20, while Temu received a rock-bottom score of 0.

Temu’s score reflects its lack of transparency, which is a growing standard in the fashion industry. “Opaque supply chains are a phenomenon relegated to the past. Without transparency, consumers can’t know if the company is doing what’s necessary to ensure workers’ welfare,” Gray explained. Temu’s refusal to disclose basic information publicly is out of step in an industry where consumers increasingly demand accountability.

Shein, while scoring slightly higher than Temu, also came under scrutiny. “Shein’s score of 20 confirms our suspicions: while they align with industry standards on some basic policies, they fall significantly behind in measures that deliver meaningful change for workers,” said Gray. Despite a 62-page sustainability report from Shein, the company continues to lag behind in addressing core human rights issues.

Cheap deals, hidden costs

While higher prices do not necessarily guarantee ethical production, ultra-low prices should raise alarm for informed shoppers. Gray pointed out the complexities behind producing something as simple as a cotton t-shirt, from growing and processing the cotton to spinning, weaving, dyeing, and sewing. Each step involves various workers across multiple countries, and for a final selling price of $6, it’s unlikely that all involved were paid fairly or worked under safe conditions.

Both Shein and PDD Holdings (Temu’s parent company) have been accused of extreme overtime in their supply chains. In one case, workers for PDD Holdings were reported to have worked 12-hour days, 380 hours per month—well above China’s legal limits. Investigations by Public Eye into Shein’s factories revealed employees working up to 75 hours per week. While overtime may sometimes be voluntary, low baseline wages often leave workers no choice but to work long hours to make ends meet.

Cotton and coercion

Tearfund also expressed concerns that Temu and Shein may be selling products made under forced labour conditions. A 2022 Bloomberg investigation confirmed that cotton used in Shein’s products was sourced from the Xinjiang region in China, an area accused of using state-sanctioned forced labour involving Uyghur Muslims and other minority groups. Temu has also been flagged for having an “extremely high risk” of forced labour in its supply chain, according to a report by US lawmakers.

As these ultra-fast fashion brands continue to rise in popularity, Tearfund is urging New Zealanders to reconsider their shopping habits and think twice before making purchases. Gray advised consumers, “If you can afford to, stop buying from these brands. If you can’t, think carefully about whether you really need that item. Reducing our demand sends a strong signal to brands that we no longer want to participate in a system where someone else pays the price for our cheap clothes.”

A Temu spokesperson sent chrislynchmedia.com a statement and said “Temu operates an online marketplace connecting consumers with third-party merchants.

“Apparel is just one of the dozens of product categories offered on our platform and not the main focus.