EU Commission targets Shein over consumer protection concerns
Following a coordinated investigation at European level, the Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission notified Shein of several practices on its platform that infringe EU consumer law.
The Chinese-based online marketplace has been accused of offering fake discounts, pressuring consumers by creating a false sense of urgency, providing misleading information about return rights, failing to process refunds properly, using deceptive labels, making misleading sustainability claims and hiding contact details to avoid complaints.
Shein now has one month to respond to the CPC Network’s findings and propose how they will address the identified consumer law issues. According to the EU Commission statement, if Shein fails to address the CPC Network’s concerns, “national authorities can take enforcement measures to ensure compliance”, including the possibility of imposing fines based on the company’s annual turnover in the relevant EU Member States.
Meanwhile, the CPC Network is investigating whether Shein informs consumers about how contractual responsibilities are divided with third-party sellers and whether buyers are warned when consumer rights don’t apply because the seller isn’t a professional trader.
The CPC Network’s action is led by the competent national authorities of Belgium, France, Ireland and The Netherlands, under the coordination of the European Commission.
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