Online Retailer Shein Under Scrutiny for Alleged Breaches of EU Law, as Consumer Defenders Express Concerns - Online retailers under fire for alleged violations of EU consumer law by advocacy groups in Europe
Shein Accused of Breaching EU Consumer Protection Laws
Brussels, Belgium - The European Union's consumer protection agencies have levied accusations against online retailer Shein for violating several EU consumer protection regulations. In a move that could potentially lead to significant fines, investigations are underway regarding deceptive business practices employed by the company.
Investigators have reported findings of misleading discounts, false deadlines, and misleading labels within Shein's platform, which allegedly breach general EU consumer protection regulations. false deadlines and misleading labels. The company is further criticized for making customer service contact details hard to access.
The practice of offering price reductions based on false previous prices and the creation of artificial countdowns to push purchases are deemed as deceptive. Misleading labels, on the other hand, suggest that products possess special features, when these are already legally required. These behaviors contravene the EU's Unfair Commercial Practices Directive (UCPD).
Furthermore, the company is accused of making unsubstantiated claims about the sustainability benefits of its products, violating the UCPD by misrepresenting environmental claims. Ongoing investigations in Brussels also focus on potential data protection issues at Shein.
Shein, founded in China in 2012 and now based in Singapore, primarily sells fast fashion through the internet. Although the specific laws violated aren't explicitly named, customer complaints have been mounting about the quality of products and misleading return information.
In response to these allegations, a company spokesperson communicated Shein's readiness to collaborate with the EU Commission and authorities across the 27 EU member states to address any concerns. The spokesperson also expressed the company's commitment to complying with EU laws.
As part of the ongoing discussions, the EU Commission has proposed a flat fee for packages from non-EU countries, specifically targeting platforms like Shein or Temu. This fee, estimated at two euros for shipments to private households, aims to fund additional custom office work and other related expenses.
[1] https://ec.europa.eu/consumers/consumer_protection/ policy/unfair_commercial_practices/index_en.htm[2] https://ec.europa.eu/info/law/better-regulation/have-yoursay/initiatives/12515-Fast-Fashion-Sustainability-and-Workers-%E2%80%93-Impact-Assessment_en
- The investigations against Shein allegedly reveal multiple breaches of EU competition policy, as the company employs deceptive practices such as misleading discounts and fake deadlines.
- In addition to violating general consumer protection regulations, Shein is also criticized for making customer service contact details hard to access, which could be interpreted as a contravention of fair competition policies.
- Furthermore, the company is accused of making unsubstantiated claims about the sustainability benefits of its products, a potential violation of the EU's laws on policy and legislation related to environmental claims.
- The EU Commission, in response to these accusations, has proposed a new policy for packaging fees from non-EU countries, specifically targeting platforms like Shein or Temu, in an effort to fund additional custom office work and related expenses, thereby ensuring fair competition in the EU market.
