Women’s accessories sold by Shein, Temu and AliExpress contained toxic substances sometimes hundreds of times above acceptable levels, authorities in South Korea found.
144 products from the retailer were tested, and multiple products from all companies failed to meet legal standards.
Seoul officials have asked for the products to be removed from sale.
Women’s accessories sold by some of the world’s most popular online shopping firms contained toxic substances sometimes hundreds of times above acceptable levels, authorities in Seoul said on Wednesday.
Chinese giants including Shein, Temu and AliExpress have skyrocketed in popularity around the world in recent years, offering a vast selection of trendy clothes and accessories at stunningly low prices.
The explosive growth has led to increased scrutiny of their business practices and safety standards, including in the European Union and South Korea, where Seoul officials have been conducting weekly inspections of items sold by online platforms.
In the most recent inspection, 144 products from Shein, AliExpress and Temu were tested, and multiple products from all companies failed to meet legal standards.
Shoes from Shein were found to contain significantly high levels of phthalates – chemicals used to make plastics more flexible – with one pair 229 times above the legal limit.
“Phthalate-based plasticisers affect reproductive functions such as sperm count reduction, and can cause infertility and even premature birth,” an official from Seoul’s environmental health team told AFP.
One such chemical “is classified as a human carcinogen by the International Cancer Institute, so special care should be taken to avoid long-term contact with the human body”, they added.
Formaldehyde, a chemical commonly used in home building products, was detected in Shein’s caps at double the allowable threshold.
Two bottles of nail polish from Shein were found to have dioxane – a possible human carcinogen that can cause liver poisoning – at levels more than 3.6 times the allowed limit and methanol concentrations 1.4 times above the acceptable level.
Shein told AFP that they “work closely with international third-party testing agencies… to regularly carry out risk-based sampling tests to ensure that products provided by suppliers meet Shein’s product safety standards”.
“Our suppliers are required to comply with the controls and standards we have put in place as well as the product safety laws and regulations in the countries we operate in,” the company added.
Seoul authorities found sandals from Temu contained lead in the insoles at levels more than 11 times the permissible limit.
“Upon receiving notice from the Seoul city government, we immediately launched an internal investigation,” a spokesperson from Temu told AFP.
“We have swiftly removed these product listings from our global marketplace and are enhancing our systems and guidance to merchants to ensure they comply with safety standards and local regulations.”
We want to remind you of the importance of staying vigilant and avoid falling victim to phishing scams. Phishing scams typically trick you into clicking on a link or attachment that either infects your machine with malware or directs you to a fraudulent page designed to steal your confidential account information. It is of utmost importance that you never enter your username and password through unsafe or suspicious links, or complete your details on an unknown attachment received. We will never send you an email asking you to click on a link in order to resolve any issues, or to complete your username or password.
Please remember:
Any email from us will always end with @intelli.host. Our website URL will always be https://www.intelli.host.
Here are some hints to help you identify phishing attempts:Avoid unfamiliar URLs Check for poor spelling and grammar Double Check inconsistent contact information Hover over links that you’re unsure about before clicking them. Do they lead to the website they’re supposed to?
If the message doesn’t look or sound like it’s from someone you know or from Intellihost, don’t action itWhen in doubt, forward suspicious emails to our support team instead of clicking potentially dangerous links. We will verify and handle these emails as spam if necessary.
“I want to own my website” Sooner or later, every web design company needs to address this request. Simple as it sounds, it really is complicated. A website is built with many assembled parts and you may be surprised to learn who legally owns each part.
The following website terminology is a guide of what you really own and what you’re really just leasing.
Web Server – You Don’t Typically Own This
The computer running the Web Server Platform that hosts your website.
For most, hosting services opens a new window. The data center owns your web server and leases it to you or your web vendor.
Obviously, you will own your website server if you purchase one, but this is usually cost prohibitive to maintain.
Web Server Platform – You Don’t Own This
This is the system software running on the server. Common examples include LAMP (Linux Apache MySql PHP), Windows IIS + ASP.NET, and Microsoft SQL Server.
You will never own this.
Content Management System (CMS) – You Don’t Own This
A Web Application that is used to manage the administration of content for your website. Examples include WordPress, Drupal, and Shopify.
You only own your CMS if you author your own source code and wrote it yourself. This is common to all software. Unless you’re a software company, you don’t own any software on any computer.
The CMS (and all software) is owned by the respective creators and licensed to you.
Custom programming written on top of a Website Platform might be something you can own. This gets complicated with Open-Source platforms due to the GNU General Public License.
Database Software – You Don’t Own This
Common examples include MySql, Oracle, Microsoft SQL Server, Microsoft Access.
You will never own the actual database.
You own your website data and content stored in the database if you author it.
Source Code (other custom programming) – You Don’t Typically Own This
The programmed code created in the language of the Web Server Platform that contains the logic and connectors to other software running on the server. Source code may also communicate with outside integrated system servers. The source code will generate the HTML/CSS/Javascript for the browser to render to your screen.
You will own your website source code if you or your employee authors it.
Otherwise, it is owned by the creator and licensed to you.
“Work for hire” could be specified in the agreement to ensure you own the website source code upon completion and final payment of the project. This gets complicated with proprietary and Open-Source platforms due to Intellectual Property and the GNU General Public License.
“Control” of the source code is usually the critical concern with contracting custom development and is usually amenable by using an open-source platform.
HTML/CSS/Javascript – You Should Own This
HTML and CSS are the building blocks of almost all websites. It is a language that browsers understand. The Javascript is programming that may alter the HTML and CSS as one interacts with the website.
The website creator should provide an agreement giving HTML/CSS/Javascript ownership to you upon completion and final payment of the project.
Otherwise, unless you or your employees authored it, it is owned by the website creator and licensed to you.
Visual Design – You Should Own This
The combination of layout and presentable graphical assets like colors, photography and typography to create the user interface, images and videos, and readable content of the website. The HTML/CSS/Javascript will contain the information to display these assets so the browser can render the website on your screen.
The website creator should provide an agreement giving website visual design ownership to you upon completion and final payment of the project.
Otherwise, unless you or your employee created the designs, it is owned by the creator and licensed to you.
Text Content – You Own This
The formatted, readable, search engine indexable, copy and pastable website text that is rendered in the browser.
You will own your website text content if you or your employee authors the content.
Otherwise, the creator of the website is the legal “author” of the website text content.
The website creator should provide an agreement giving website content ownership to you upon completion and final payment of the project.
Photography – You Own This… If You Took The Pictures
The entire or part of a digitized photograph used on a website as either part of the logo, user interface, slideshow, gallery, video or other visual design asset.
You will own your website photography if you or your employee captures the photographs
Otherwise, you are only given a license to others’ photography. Keep a record of that license.
Browser – You Don’t Own This
A browser is the computer software we use to look at websites. Examples are Internet Explorer, Safari, Chrome, Firefox and Opera. A browser will display the rendered website which includes the HTML/CSS/Javascript and all visual design assets.
You will never own this.
Domain Name – You Don’t Own This Either. Surprised?
The Domain Name appears in the address bar of the browser. It is the humanly memorable, identifiable part of the website URL that is indexed by search engines, displayed in most marketing, and remembered as part of the brand.
You do not actually own a domain name even though you are a registered domain owner.
You have a contract with the domain registrar giving you “ownership” of the domain much like a contract with a telephone company for a phone number.
From Wikipedia: “…domain name registration with a registrar does not confer any legal ownership of the domain name, only an exclusive right of use.”
The Legal Reality of Owning a Website
You will never legally own the domain name, web server platform, CMS, web platform, database software, or language used to build your website.
You will usually never own the web server that hosts your website.
You are be granted a license to use the Intellectual Property of the website creator and/or the web platform used to build it.
Only if you program the website yourself or have a “work for hire” agreement, you will own the website source code.
If you author your own content, design the interface, take your own photographs, and create your own graphics, you will own all of the website “visual design” and content.
Own Your Website “Finished Assembled Work”
The website terminology that matters most is the “finished assembled work.” I define this as the HTML/CSS/Javascript, visual design, and the text content that is rendered by the Browser. The entirety of finished assembled work can be saved and stored by you, and can be rebuilt with any website platform. Look for contractual terms defining “finished assembled work” and stating you own the website “finished assembled work” upon completion and final payment of the project.
Article via: Barrett Lombardo, Co-Founder / Chief Operating Officer of Orbit Media Studios
Barrett Lombardo is the Co-Founder and COO at Orbit Media Studios. Barrett has been developing websites since 1995.
What is the legal framework in South Africa for cryptocurrency?
Bitcoin, Litecoin, Ethereum, Monero…what do they all have in common? They are all cryptocurrencies. You’ve probably heard of Bitcoin. Many people think Bitcoin and cryptocurrency are the same thing, but in fact Bitcoin is just one type of cryptocurrency. Cryptocurrency is a digital payment system that works outside of the banking system. It’s a peer-to-peer payment system that allows anyone anywhere to send and receive payments. Cryptocurrency payments are digital entries on an online database. Cryptocurrency is stored in a digital wallet and when you make a cryptocurrency payment, the transaction is recorded in a public ledger. Bitcoin was introduced in 2009 by an anonymous developer and it has since become the most well-known cryptocurrency in the world. It has inspired the development of other cryptocurrencies, such as the ones named above.
As cryptocurrency gains popularity, it becomes harder and harder for countries to keep up from a regulatory perspective, particularly as the digital world knows no territorial or legislative boundaries. Because cryptocurrency operates outside of the traditional banking environment, and is highly encrypted (hence the name), it has become the favourite of cybercriminals. Ransomware attackers demand payment – often millions of dollars – in cryptocurrency. Cryptocurrency has a tainted reputation as a result, but there is nothing inherently illegal or bad about cryptocurrency. Therefore South Africa has fixed its sights on providing legal structuring mechanisms to make the grey areas of cryptocurrency regulation more black and white.
South African Reserve Bank
Recent investigations conducted by the South African Reserve Bank (SARB) have demonstrated how easily cryptocurrency can become decentralised. The investigation highlighted non-compliance with existing regulations, leading to tax evasion, money laundering and terrorist financing activities.
SARB’s solution is to regulate cryptocurrency not as a currency, but rather as a financial asset. Legitimising the industry in this way will enable the asset’s compliance with anti-money laundering legislation and exchange control regulations, among others.
Position paper on crypto assets
On 11 June 2021, the Intergovernmental Fintech Working Group (IFWG) confirmed that crypto assets will be brought into the SA regulatory review. The published position paper on crypto assets provided three pillars of regulation:
Implementation of an anti-money laundering (AML) and counter-terrorism financing framework
Framework for monitoring cross-border financial flows
Application of financial sector laws
Regulatory framework
The regulation of cryptocurrency will follow a phased approach. The first phase began in October 2022. The South Africa Financial Sector Conduct Authority (FSCA) declared that, effective 19 October 2022, crypto assets are considered financial products.
This means that crypto assets are subject to FSCA regulation in terms of section 1(h) of the Financial Advisory and Intermediary Services Act (FAIS) Act. Individuals who provide advice or intermediary services related to crypto assets must be authorised as a financial services provider or as a representative of such a provider.
The Conduct of the Financial Institutions Act (COFI) Bill will now include certain crypto-asset services as a licensing activity and define them as “financial services” in the Financial Sector Regulation Act, 2017. Applications for a licence must be submitted before 30 November 2023.
Along with the latest declaration, an FSCA policy document was released containing explanatory notes, transitional details and plans for a crypto-asset regulatory and licensing framework.
The regulatory framework is continually evolving and the policy document was accompanied by a draft general exemption. Commentary is invited on the exemption, which is intended to help the transition of existing crypto-asset sector players to the new regime.
More regulations are expected which are likely to prohibit collective investment schemes and pension funds from exposure to crypto assets. Derivative instruments or other securities that reference crypto assets as the underlying assets should also be excluded from these long-term savings vehicles.
Taming the wild west
There is a lot of uncertainty regarding cryptocurrency regulation. However, the SARB aims to develop a regulatory framework for crypto exchanges that will allow for cryptocurrency listing. The SARB has confirmed that it will enforce know-your-customer (KYC) requirements and, where applicable, submission of Suspicious Transaction Reports to the FIC.
The cowboys who misuse cryptocurrency for illegal purposes must not be allowed to ruin the market for legitimate users. Cryptocurrency, originally a vehicle for investing, often speculatively, is now becoming an accepted form of payment. The businesses that accept crypto payments are still predominantly in the US, such as Microsoft, Paypal, Starbucks, AMC Theaters, and AT&T. But inevitably take-up of crypto will spread, just as alternative payment methods such as SnapScan and ApplePay have. Cryptocurrency has certain benefits that may make it particularly attractive to the South African environment, where there are still many unbanked people. Crypto is subject to fewer fees; you can make or receive payment wherever there is internet connectivity; and it is available to everyone, i.e. those who do not have access to financial services like banks and loans tend to have internet connections through mobile devices. Anyone with an internet connection can make and receive payments, borrow money, or access financial services wherever they are.
For more information
SD Law is a firm of experienced attorneys based in Cape Town, with offices in Johannesburg and Durban. If you want to know more about cryptocurrency, or need assistance with other digital concerns, including compliance with POPIA, cyberbullying and cybercrime, call Simon on 086 099 5146 or email sdippenaar@sdlaw.co.za.
Cryptocurrency, or “crypto” hit the headlines in 2009, when Bitcoin launched, but its origins can be traced back to the 1980s, when it was called cyber currency. An American cryptographer called David Chaum invented digital cash, which relied on cryptography to secure and verify transactions, but the requisite protocols and software that would facilitate a true digital currency did not begin to be developed until the 1990s. So what is cryptocurrency?
Cryptocurrency as we know it now is a digital currency in which transactions are verified and records maintained by a decentralised system using cryptography, rather than by a centralised authority such as a bank. The digital money is created from code which is monitored by a peer-to-peer internet protocol. It can be digitally traded and functions as a medium of exchange. In other words, it is an encrypted string of data, encoded to signify one unit of currency which has the same value all over the world, i.e., no conversion/exchange is necessary.
Investing in crypto
When it was first launched, Bitcoin was intended to be used for daily transactions, from low-value commodities like a cup of coffee to assets such as a computer. High-value items like real estate were even deemed to be suitable for purchase by Bitcoin. However, the reality was a bit different. Crypto was considered…and used as…an investment medium. Bitcoin was on an upward trajectory and investors piled in, but the bubble may have burst. One Bitcoin is now worth around $17,000. It was worth c. $69,000 in November 2021. Some analysts think it is unlikely to recover to 2021 levels. Bitcoin and other cryptocurrencies, like non-digital assets, have been affected by macroeconomic pressures, including the war in Ukraine, inflation and the cost-of-living crisis, and uncertainty around rising interest rates in the US and UK. Crypto has also been impacted by forces related to its digital nature: China has made cryptocurrency transactions illegal and FTX, the largest global cryptocurrency exchange, has collapsed.
However, a long-term investment portfolio could benefit from holding cryptocurrency. Market experts believe that Bitcoin could rally, although that might not be in the near future. Crypto could help to diversify a portfolio and provide returns when other investments are underperforming. But it’s important to understand that crypto is unstable and volatile and carries risk.
Legal tender
Cryptocurrencies do not have widespread status as legal tender, but they are regarded as assets in South Africa and can be tendered to a creditor as a valid and legal offer of payment, if you can find a vendor who accepts crypto. The number of institutions accepting cryptocurrencies is growing, but they are mostly in the US for the time being. There, it is possible to buy a wide variety of products from e-commerce websites using crypto. Examples include technology and e-commerce sites such as AT&T and Microsoft. Some luxury goods retailers accept crypto as a form of payment, as do some car dealers, from mass-market brands to high-end luxury marques. In the US, it is possible to spend cryptocurrency at a retailer that doesn’t accept it directly by using a cryptocurrency debit card, such as BitPay. This feature does not yet exist in South Africa.
Cryptocurrency is neither issued nor governed by any jurisdiction and exists purely within the community of users of the currency. We’ll look at the regulatory framework for cryptocurrency in South Africa in a future article
Examples of cryptocurrency
Bitcoin is the most recognised cryptocurrency, as it was the first onto the scene. Others include Ethereum, Litecoin, Ripple, Tether and Binance Coin.
BITCOIN
Since there is no centralised third party involved, Bitcoin was created as a peer-to-peer value transmission system based on encryption. A useful tool for conducting business between two or more parties, the Bitcoin blockchain is immutable, meaning it cannot be altered in any manner. There are only 21 million Bitcoin that will ever be created.
ETHEREUM
Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin. Ethereum is a system that allows users to create decentralised apps and organisations, keep assets, execute transactions, and communicate. Users retain control over their own data and what is shared, so personal information is kept confidential.
LITECOIN
Litecoin is similar to Bitcoin but has been more innovative, developing systems for faster payments and processes to allow more transactions.
RIPPLE
Ripple is a distributed ledger system that was founded in 2012 by a company that has worked with various banks and financial institutions. Ripple can be used to track different kinds of transactions, not just cryptocurrency.
TETHER
Tether is a stablecoin, which means it is backed by fiat currencies like the US dollar or euro and maintains a value roughly equal to one of those denominations. Theoretically, Tether’s value should be more stable than other cryptocurrencies, and investors who are concerned about volatility tend to prefer it.
BINANCE COIN
One of the biggest cryptocurrency exchanges in the world, Binance, accepts payments in the form of Binance Coin (BNB). Binance Coin has grown since it was introduced in 2017, and it does more than just enable transactions on Binance’s exchange platform. It can be used for trading and processing payments. Additionally, it can be traded or converted into other cryptocurrencies like Ethereum or Bitcoin.
As a matter of interest, non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.
Cryptocurrency risks
Cryptocurrency is inherently risky. The same features that make it attractive contribute to its risk. Those who value the peer-to-peer concept and want to avoid “big finance” also need to understand that the lack of coordination and clarity on regulatory, financial, tax and legal treatment means crypto does not have the protection afforded other financial assets. Cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds. And, unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. This contributes to the extreme volatility seen in the crypto market and can result in both significant gains and big losses.
Cryptocurrency is favoured by cybercriminals making ransom demands because assets are hidden and untraceable. There are also scams directly related to cryptocurrency, and this type of crime is on the increase. These include: fake websites which feature bogus testimonials and promise attractive, guaranteed returns for continued investment; virtual Ponzi schemes where cryptocurrency criminals promote non-existent opportunities to invest in digital currencies and purport to pay huge returns by paying off old investors with new investors’ money; and “celebrity” endorsements, in which scammers impersonate well-known names and promise to increase the victim’s investment in the cryptocurrency but instead steal the funds sent to purchase the crypto. One of the saddest scams takes advantage of those looking for love online. Con artists (usually men) persuade people (usually women) they match with on dating apps to invest in cryptocurrency.
Lastly, crypto, like any online activity, is subject to hacking, where cybercriminals break into digital wallets and steal the cryptocurrency. The blockchain technology that underpins cryptocurrency is secure, and crypto is not easy to hack into. But it is not unhackable. It is also not immune from human error. Password amnesia can mean the loss of all one’s cryptocurrency.
Benefits of cryptocurrency
Despite the risk, there are benefits to cryptocurrency. It is easy to move and store. It is internationally available. It is governed, or rather ungoverned, by multiple jurisdictions. Brokers are unregulated, making it more accessible. However, this last point is being addressed by the South African Reserve Bank at present. The biggest benefit in the African context is that it is available to anyone with an internet connection, which potentially makes it a useful tool for the half a billion unbanked in sub-Saharan Africa. (Data from the World Bank shows that around 45% of people living in sub-Saharan Africa don’t have access to a bank account, which equates to almost half a billion people excluded from financial services.) However, crypto needs to be purchased initially and loaded into a digital wallet with tangible funds, usually a debit card or electronic fund transfer (EFT). A credit card may also be used but crypto purchases with credit cards are considered risky. Some exchanges and some credit card providers don’t support them. This hurdle needs to be overcome and some of the risks mitigated before cryptocurrency can be considered a viable solution for the unbanked.
For more information
SD Law is a firm of experienced attorneys based in Cape Town, with offices in Johannesburg and Durban. If you want to know more about cryptocurrency, or need assistance with other digital concerns, including compliance with POPIA, cyberbullying and cybercrime, call Simon on 086 099 5146 or email sdippenaar@sdlaw.co.za.
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