Probe into Shein finds breaches of EU law
An investigation into online fashion retailer Shein has found what the European Commission has described as “a broad range of practices” on its platform that infringe EU consumer law.
The Consumer Protection Cooperation (CPC) Network of national consumer authorities has told Shein to bring these practices into line with EU law.
According to the commission, the Chinese platform remains under investigation and has been asked to provide further information to the network.
Ireland’s Competition and Consumer Protection Commission, along with consumer authorities in Belgium, France, and the Netherlands, led the probe under the co-ordination of the European Commission.
Fake discounts
The practices identified by the investigation included:
- Fake discounts,
- Putting consumers under pressure to complete purchases using tactics like false purchase deadlines,
- Missing, incorrect, and misleading information about issues such as consumers' legal rights to return goods and receive refunds,
- Deceptive product labels,
- Misleading sustainability claims, and
- Hidden contact details for consumer questions or complaints.
The CPC Network has also asked Shein to assess its compliance with further obligations under EU consumer law, such as the obligation to ensure that product rankings, reviews, and ratings are not presented to consumers in a misleading manner.
The commission says that Shein now has one month to reply to the CPC Network's findings and propose commitments on how it will address the identified consumer-law issues. The platform could face fines if it fails to address the issues.
‘Clear message’
It adds that this action is complementary to a continuing inquiry into the platform being conducted under the Digital Services Act (DSA).
Welcoming the CPC Network’s action, Michael McGrath (EU commissioner with responsibility for consumer protection) said that it sent a “clear message”.
“We will not shy away from holding e-commerce platforms to account, regardless of where they are based. EU consumer-protection laws are not optional – they must be applied in all cases,” he stated.
A Shein spokesperson said: "We have been working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations, and we are continuing to engage in this process to address any concerns.
"Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience."