New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
Enforcement ActionLow Risk

TX AG Sues Shein for Toxic Products and CCP Data Exposure

Shein US Services LLCFebruary 20, 2026Texas Attorney General

Summary

Texas Attorney General Ken Paxton filed a lawsuit against Shein US Services LLC for selling toxic products and exposing consumers' personal data to the Chinese Communist Party. The lawsuit seeks monetary penalties under the Texas Deceptive Trade Practices Act. This action is part of a broader effort to protect Texans from health risks and CCP influence.

Remedy

Shein may face monetary penalties up to $10,000 per DTPA violation, with higher amounts for targeting elderly consumers, and must cease deceptive practices.

Monetary Penalty

Contract Impact

In-house legal teams should review vendor and supplier agreements for product safety and compliance clauses, ensuring they mandate certifications for toxic substance testing and compliance with applicable consumer product safety laws. Customer-facing terms and privacy policies must be examined for data handling provisions, particularly any clauses permitting data sharing with foreign governments or entities like the Chinese Communist Party. Data processing agreements (DPAs) should include strict data transfer restrictions, prohibitions on government-requested disclosures without legal process, and enhanced audit rights. Contracts may need amendments to require explicit consent for cross-border data transfers, implement data localization where required, and add robust breach notification obligations covering government-accessed data incidents.

Contract Search Terms

product safety certificationdata localization requirementsgovernment data access clausematerial disclosure requirementswarranty compliancethird-party audit rightsdata transfer restrictionsCCP data sharing prohibitiontoxic substance complianceconsumer product safety act

Laws Cited

Texas Deceptive Trade Practices Act

Violation Types

Entity Details

Entity

Shein US Services LLC

Also known as: Shein

Industry

Retail

Official Sources

Related Enforcement Actions

TX

PDD Holdings, Inc. and WhaleCo Inc. (doing business as Temu)

$3.0M

Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.

TX

Albertsons Companies, Inc.

$773.0M

Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.

TX

Gerber Products Company and Nestlé USA, Inc.

Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.

TX

Rubinsky Roofing LLC

$1.5M

The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.

TX

UnitedHealth Group, Inc.

The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.

TX

Tris Pharmaceuticals

$7.5M

Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.