The European Union has warned Shein that several of its practices violate EU consumer protection law, including by offering “fake discounts” and pressuring customers into completing purchases with phony deadlines. On Monday, the EU’s Consumer Protection Cooperation (CPC) Network said the fast-fashion retailer needs to bring its practices in line with the law, or else face a fine.
In addition to showing price reductions that don’t accurately reflect a product’s previous price, the investigation by the CPC found that Shein uses “deceptive” product labels to trick users into thinking an item comes with special characteristics when “the relevant feature is required by law.”
The investigation also found that Shein shows “false or deceptive” sustainability claims, as well as “incomplete and incorrect” information about a customer’s rights to return goods and get refunds. The EU says Shein hides its contact information, making it difficult for customers to get in touch with the company.
Last year, the EU designated Shein a “very large online platform,” which means it’s subject to the rules under the Digital Services Act (DSA). The law requires sites like Shein, Amazon, AliExpress, Meta, and TikTok to remove illegal goods, services, or content from their platforms. Companies that break the rules could face fines of up to 6 percent of their global turnover.
Shein, which manufactures most of its products in China, is facing challenges in the US as well. Last month, the retailer raised its prices in response to President Donald Trump’s tariffs and the elimination of a rule that previously let low-cost packages from China enter the US duty-free.
The EU also asked for more information from Shein on how it’s complying with laws against misleading product rankings, reviews, and ratings. Shein has one month to comply with the EU’s request.
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