Brussels, Belgium – The European Commission has identified significant violations of consumer protection laws by the Chinese e-commerce platform Shein, renowned for its low-cost offerings, following a comprehensive investigation conducted in collaboration with national consumer protection agencies.
Investigators determined that Shein employs deceptive pricing tactics, including misleading original prices and the use of perpetually resetting countdown timers designed to create a false sense of urgency among shoppers. These practices entice consumers to make purchases under the impression they are securing legitimate bargains.
In addition to pricing issues, the Commission’s report highlighted serious transparency shortcomings on Shein’s platform. These include unclear return policies, dubious claims regarding sustainability, and confusing product labeling. Furthermore, the ease of reaching customer service was called into question, as users faced obstacles when attempting to initiate inquiries or file complaints.
Shein has one month to respond to the findings and outline corrective measures. Should the Commission find inadequate progress, the company may face financial penalties. National authorities from Belgium, France, Ireland, and the Netherlands are actively overseeing the enforcement process.
Michael McGrath, the Justice and Consumer Protection Commissioner, emphasized the expectation for all companies operating in the EU to adhere to established regulations. He remarked, “Today’s action sends a clear message: e-commerce platforms will be held accountable regardless of their country of origin,” reinforcing that consumer protection laws in the EU are mandatory.
This scrutiny is not isolated; another Chinese competitor, Temu, faced similar allegations in November for breaching EU consumer regulations. Temu was cited for similar tactics and also for gamifying the shopping experience through promotions and displaying unverifiable product reviews.
Both Shein and Temu are also facing investigations regarding potential breaches of the Digital Services Act. This inquiry pertains to their algorithmic recommendation systems, which affect product visibility to users, and the sale of goods that may not meet EU health and safety standards.
The ongoing investigations reflect a growing concern among European authorities regarding the practices of foreign e-commerce giants and their compliance with regional laws.
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