ESG Enforcement Tracker

Key facts:

The Attorney General of Texas (AG), the state’s elected chief legal officer, has launched a civil investigation into global fast-fashion retailer Shein. The inquiry will assess whether Shein’s supply chain and manufacturing practices breach Texas law by using hazardous materials, misrepresenting product safety, or misleading consumers about ethical sourcing.

The AG’s press release refers to “unethical labour practices and unsafe practices”. It clarifies that the investigation will determine whether Shein’s supply chain and manufacturing processes violate Texas law by:

• Using toxic or hazardous materials;
• Misleading consumers about product safety; and
• Misleading consumers about ethical sourcing.

While enforcement of U.S. employment laws generally falls under the U.S. Department of Labor and, in Texas, the Texas Workforce Commission, the AG has authority under state consumer protection and health and safety statutes. The investigation is likely grounded in provisions of the Texas Deceptive Trade Practices–Consumer Protection Act (Texas Business & Commerce Code §§ 17.41–17.63), which prohibits false, misleading, or deceptive acts in commerce. These include purported misrepresentations about product safety, quality, or ethical sourcing.

The AG also has powers under the Texas Health and Safety Code for hazardous substances and under the Texas Data Privacy and Security Act, Chapter 541 of the Texas Business & Commerce Code, for data privacy violations. This suggests any enforcement action will rely on consumer protection and product safety provisions rather than direct employment law enforcement.

The investigation follows global actions and high-profile reports concerning Shein’s products and sourcing practices, underscoring growing scrutiny of fast-fashion supply chains. The AG stated that the action aligns with the “Make America Healthy Again” initiative and coincides with other high-profile investigations.