National consumer authorities and the European Commission jointly announced today that Shein is responsible for six breaches of EU consumer laws, calling on the company to comply within one month.
This is the latest example of the EU’s growing scrutiny of the China-based marketplace and ultra-fast fashion company, as part of broader efforts to protect consumers – especially by cracking down on deceptive online practices and limiting the circulation of hazardous and environmentally harmful goods within the single market.
“We will not shy away from holding e-commerce platforms to account, regardless of where they are based,” said Michael McGrath, commissioner responsible for consumer protection.
The Commission and national consumer protection authorities opened the investigation in February. Breaches identified during the investigation include: fake discounts, pressure on consumer to sell, missing and misleading information, deceptive product labelling, and hidden contact details for Shein’s consumer service.
The Commission and national authorities are still investigating whether Shein’s algorithm is deceptive – specifically, whether “product rankings, reviews, and ratings are not presented to consumers in a misleading manner.” They are also looking into Shein’s contractual obligations with third-party sellers.
This investigation stems from numerous European consumer protection laws, including the General Product Safety Regulation (GPSR), the Unfair Commercial Practices Directive, and e-Commerce Directive.
A Shein spokesperson said the company is “working constructively with national consumer authorities and the EU Commission” and “continuing to engage in the process to address any concerns.”
(aw)
