Billionaire calls for investigation into two popular online shopping platforms: 'It's a real worry'

The rise of online shopping has resulted in the creation of ultra-cheap retailers like Shein and Temu that ship products from overseas. While these options look like a good way for consumers to save money, there are hidden dangers to people and the planet.

Australian billionaire Gerry Harvey recently called out the companies for their activities and suggested that the country's government should look into their impact, Pedestrian reports.

What's happening?

As Pedestrian acknowledged, Harvey isn't exactly impartial. He is co-founder and chair of Harvey Norman, a leading retailer in Australia, making Temu and Shein his competitors.

However, that doesn't mean he doesn't have a point.

"[Shein and Temu] are a . . . pariah, it's a very difficult situation for Australian retailers to combat," Harvey told the Nightly in January. "They never pay any tax here, they don't employ anyone. There should be a government inquiry into it as to what ramifications are there and whether they should or shouldn't do something about it. It's a real worry, do you let it just go or not; I think it's worth an investigation."

Why does it matter if Shein and Temu sell cheap goods?

One of the reasons these retailers are able to offer goods so cheaply is the lack of safety and quality standards being applied to their products.

Pedestrian cited the examples of "croissant lamps" that turned out to be actual croissants coated in resin, highly flammable children's clothing that resulted in severe burns for one 8-year-old wearer, and a vial of human blood found in a shipment — all dangerous or damaging situations for the buyers.

Another factor in the price? The heavy exploitation of workers, including the use of child labor. Shein and Temu may have raked in a combined 3 billion Australian dollars (about $1.89 billion) in sales last year, per Pedestrian, but a BBC investigation revealed Shein's workers are overworked, underpaid, and kept in unhealthy conditions to keep costs low.

Meanwhile, the way these companies churn out ton after ton of low-quality products, meant to be bought on a whim and thrown away just as easily, is a driver behind overconsumption and pollution, which costs consumers far more than they save while damaging the planet we all live on. The problem has been extensively discussed when it comes to fast fashion, for example.

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What's being done about Shein and Temu?

It's not clear whether the Australian government will investigate these companies, but it might take a page from France's book. The European nation has recently passed a bill that would tax these products up to 10 euros (about $10) per item to offset the damage they do to the environment.

As an individual, you can also help fight exploitation and pollution by choosing eco-friendly brands to support, or buy clothes and other items secondhand.

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