Texas AG Sues Shein in Collin County Alleging Toxic Products, Data Risks

Texas Attorney General Ken Paxton filed a civil complaint in Collin County district court on February 20 accusing Shein and affiliated entities of selling products that contain toxic substances and of concealing data practices that expose Texans’ information to foreign government access. The complaint invokes the Texas Deceptive Trade Practices Act, Texas Business & Commerce Code §§17.41–17.63, and seeks enforcement authority under Section 17.47 of the DTPA.

The filing names five defendants: Shein US Services, LLC; Shein Distribution Corporation; Shein Technology LLC; Roadget Business Pte Ltd.; and Zoetop Business Co., Limited. The complaint asks the court to permit Level 3 discovery under Texas Rule of Civil Procedure 190.4 and requests civil penalties, consumer redress, and equitable relief. The complaint specifically asks the court to “enjoin Shein from sharing or disclosing consumers’ data with the CCP, or any Chinese governmental entity, without first obtaining informed consent from the consumer to whom the data pertains or originates,” and to award attorneys’ fees and costs under Tex. Gov’t Code Ann. §402.006(c).

On the product-safety side, the attorney general’s office cites independent laboratory tests that it says “repeatedly found” garments sold by Shein containing toxic substances exceeding established safety limits in items marketed to newborns, pregnant women, and schoolchildren. The complaint, as described in state filings and reporting, further alleges toys and other children’s products sold through the platform are “laden with hazardous toxic chemicals and heavy metals,” language the filing and allied reporting refer to as potential “silent carriers of poison” in Texas homes. The complaint excerpts and public summaries provided by the AG do not list laboratory names, test dates, chemical measurements, or specific product SKUs in the summaries released so far.

The complaint advances parallel data-privacy allegations, characterizing Shein as acting like a “data siphon” and asserting that Chinese national intelligence, cybersecurity, and data laws could require Shein to make U.S. consumer data accessible to Chinese government entities. The state says Shein’s privacy policy “allegedly does not disclose the possibility of such access,” and asks the court for injunctions barring sharing consumer data with Chinese governmental entities absent informed consent. A legal summary by DLA Piper frames the complaint as a two-pronged claim of “physical risks from allegedly toxic products and digital risks tied to consumer data privacy.” DLA Piper’s background notes also cite a 2018 data breach affecting more than 39 million accounts, a nearly $2 million fine by the New York Attorney General, and a €150 million CNIL fine as part of Shein’s enforcement history.

Paxton framed the filing as part of a broader campaign against companies he says are tied to or vulnerable to the Chinese Communist Party, telling Texas Scorecard, “This is the fifth lawsuit I’ve filed against companies tied to the Chinese Communist Party in four days. The reasons are simple: In Texas, we will use every tool at our disposal to protect Texans from China’s influence and put America First.” Shein, through a spokesperson reported by Texas Scorecard, said in response: “We strongly disagree with the allegations in the complaint and will prove our position in court.”

The Collin County suit names statutory claims and specific injunctive remedies and will proceed under the docket created by the AG’s Feb. 20 filing with Level 3 discovery. The complaint seeks to bind the company to new data-consent requirements and to secure civil penalties and consumer restitution as the litigation moves forward in Collin County district court.