The noose is tightening further around Shein, which has been in the crosshairs of European authorities for several months. The Chinese e-commerce giant received an official notification from the European Commission and the Consumer Protection Cooperation Network (CPC) on Monday, May 26, according to a press release from the European Commission. The Chinese company has already been in Brussels' sights since June 2024 under the Digital Services Act (DSA, the European regulation on digital services), particularly for its misleading interfaces ("dark patterns"). But now, it is being attacked specifically on the grounds of consumer protection.
Last February, the European Commission presented its action plan to put an end to the massive influx of cheap products that do not comply with European standards, mainly from Chinese platforms like Temu and Shein. She also announced that a new investigation was being conducted against Shein, in cooperation with the Consumer Protection Cooperation (CPC) network. Monday's notification is therefore the first result of this investigation conducted in the field of consumer law.
Fake promotions, forced sales, incorrect or misleading information
European authorities have listed several practices of the Chinese platform considered potentially problematic. Shein is thus suspected of using:
- fake promotions. The authorities note, for example, that the platform "claims to offer better deals by displaying price reductions that are not based on actual 'previous prices'."
- forced selling: European consumers, once on the Shein website, are reportedly faced with various tactics, such as textile stocks that are falsely presented as limited or available only until a certain date.
- misleading or incomplete information on the right of withdrawal or refund. Consumers are also reportedly having difficulty easily contacting Shein for questions and complaints, the Commission notes. Another problem: Shein is accused of providing "false or misleading information about the sustainability benefits of its products."
- Finally, products sold on Shein sometimes feature misleading labeling "that suggests the product offers something special," even though "the characteristic in question is required by law," the European executive also observes.
Other points were raised by the CPC network, which represents European authorities responsible for protecting and defending consumers on the Old Continent. This case is being led by France, Belgium, Ireland, and the Netherlands, under the coordination of the European Commission. Shein now has one month to respond to the various points raised. Ultimately, European authorities could impose fines on the platform based on its annual turnover in the relevant EU member states, the European Commission warns.
Contacted by 01net.com, a Shein spokesperson said the group was working "constructively with the (European) authorities (…) to demonstrate (its) commitment to complying with European Union laws and regulations," adding that it remained "committed to this process to address all concerns." "Our priority remains to ensure a safe, reliable and enjoyable online shopping experience for European consumers," he said.
Editor's note: This article was amended early Monday afternoon, May 26, to add (last paragraph) Shein's comment received after initial publication.
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