Fake discounts, pressure selling, and other contentious practices employed by Shein, the Chinese fast-fashion giant, have been flagged by the European Union (EU) as violations of consumer law. The EU has given Shein a month to address these concerns or face fines calculated on the company’s sales within EU member states.
EU Justice Commissioner Michael McGrath emphasized the importance of adherence to consumer standards, stating, "It's now for Shein to step up, respect the rules and bring its practices fully in line."
A Shein spokesperson asserted the company's commitment to providing a safe and reliable online shopping experience for European consumers. The EU's investigation revealed a variety of troubling practices on Shein’s platform, including misleading promotions, deceptive product labels, false sustainability claims, and missing contact details.
Furthermore, the investigation uncovered instances of purported price reductions that did not reflect actual previous prices, alongside deceptive deadlines meant to pressure customers into purchases. The EU has urged Shein to ensure its product reviews are not misleading to consumers.
McGrath added, "All companies reaching out to EU consumers must play by our rules. Today's action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of their origin."
In response, Shein stated its commitment to ongoing engagement with national consumer authorities to address the EU's concerns, affirming its dedication to compliance with EU regulations.
Shein has faced similar criticisms regarding its business practices previously, especially concerning labor conditions. A BBC report earlier this year indicated some workers were logging up to 75-hour weeks, violating Chinese labor laws. UK MPs also accused Shein of "willful ignorance" when its representatives failed to provide information on cotton sourcing.
In light of adverse reports regarding worker treatment, Shein has reiterated its commitment to fair labor standards, asserting it invests significantly in governance and compliance throughout its supply chain. "We strive to set the highest standards for pay and require all supply chain partners to adhere to our code of conduct," the company stated.
