The European Union (EU) has placed Chinese fast-fashion giant Shein under investigation for deceptive sales practices, including fake discounts and pressure selling tactics that allegedly violate EU consumer protection laws. The EU's consumer rights enforcer has identified a series of misleading practices consumers face while shopping on Shein, including false claims about product sustainability and misleading price reductions.
EU justice commissioner Michael McGrath emphasized the importance of compliance, stating, "It's now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards." Shein has been given one month to respond to these findings to avoid potential fines based on its sales in the EU.
Among the practices highlighted are fake deadlines that create a sense of urgency for buyers and the presentation of product reviews in a misleading manner. Shein's spokesperson reassured that the brand is committed to maintaining a positive online shopping experience for European consumers and is actively engaged in addressing regulatory concerns.
In addition to ongoing scrutiny from EU authorities, Shein has faced backlash for labor practices, with reports of employees working excessively long hours, raising concerns about compliance with labor laws in China. Despite the controversies, consumer interest in Shein remains high, as noted in recent consumer sentiment surveys.
As the EU investigation unfolds, it sends a clear message that accountability in e-commerce practices is paramount, regardless of a company's origin or market reach.
EU justice commissioner Michael McGrath emphasized the importance of compliance, stating, "It's now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards." Shein has been given one month to respond to these findings to avoid potential fines based on its sales in the EU.
Among the practices highlighted are fake deadlines that create a sense of urgency for buyers and the presentation of product reviews in a misleading manner. Shein's spokesperson reassured that the brand is committed to maintaining a positive online shopping experience for European consumers and is actively engaged in addressing regulatory concerns.
In addition to ongoing scrutiny from EU authorities, Shein has faced backlash for labor practices, with reports of employees working excessively long hours, raising concerns about compliance with labor laws in China. Despite the controversies, consumer interest in Shein remains high, as noted in recent consumer sentiment surveys.
As the EU investigation unfolds, it sends a clear message that accountability in e-commerce practices is paramount, regardless of a company's origin or market reach.
