From false discounts to deceptive information: these are the six positions for which Brussels investigates Shein
The European Commission hardens (much) its surveillance over Shein, The emerging star of ultra -grape fashion ecommerce. The agency based in Burselas has notified the Chinese platform a series of practices that violate community legislation on consumer protection.
This touch of attention comes after an investigation, led by the authorities of Belgium, France, Ireland and the Netherlands, and carried out together with the Cooperation Network for Consumer Protection (CPC), and puts on the table a set of tactics that, according to Brussels, They distort the purchase decision making of users and violate key directives such as unfair commercial practices or consumer rights directive.
Questioned practices: from unreal offers to doubtful sustainability
The file collects six great fronts where Shein would be breaking the European regulatory framework:
False discounts: promotions that are not based on real prices, giving a discount that is not real, thus violating the price directive.
Commercial pressure tactics: Use of counting clocks or emergency messages to force precipitated purchase decisions.
Misleading information: Lack of transparency in returns and reimbursement policies, as well as breaches in its processing.
Confusing labeling: use of badges that suggest “extra” benefits of products when in reality they are minimal legal requirements.
Greenwashing: environmental allegations that are not backed by data or verifiable certifications.
Opaque contact: Absence of clear paths for consumers to formulate claims or consult doubts.
In addition, the CPC network is evaluating whether Shein manipulates or partially presents the product assessments, and if he adequately informs about his role as an intermediary in operations with third sellers of his marketplace.
In the words of Michael McGrath, consumer protection commissioner, «today's action sends a clear message: we will not prevent electronic commerce platforms from paying accounts, regardless of where they are. EU legislation in consumer protection is not optional, but must be applied in all cases ».
The truth is that now Shein has activated a countdown: The company has a month to present your arguments and correction commitments. If the commission understands that the answers are not satisfactory, the national authorities could initiate execution actions that include Fines proportional to the business volume of the company in each affected country.
For his part, Shein has explained his readiness To collaborate with the European agency in this matter: «We have been collaborating constructively with the national consumer authorities and with the European Commission to demonstrate our commitment to compliance with EU laws and regulations, and we continue to be involved in this process to address any concern. Our priority remains to ensure that European consumers enjoy a Safe, reliable and satisfactory online purchase experience«.
A new controversy for Shein
In parallel, Shein is also being investigated by the commission within the framework of the Digital Services Law (DSA), having been designated in April 2024 as a very large online platform (Vlop). This research refers, among other things, to the presence of illegal content and goods in Shein, the transparency of its recommendation systems and measures to mitigate the risks related to the protection of consumers, public health and the well -being of users.
Recall that in addition, just a few days ago, the European Commission put on the table a proposal to establish A two -euro rate for each package sent from countries not belonging to the European Union and valued below 150 eurosto a extent that would directly affect the Shein business model. This initiative arises from the need to adapt customs regulation to the reality of modern electronic commerce. As we tell you in the month of February, the European Union faces an avalanche of millions of daily packages, which hinders the effective supervision of security, quality and compliance of products. The two -euro rate seeks to be a mechanism to compensate for the costs associated with this logistics and regulatory challenge, while mitigating the advantage of Asian platforms.
Since its foundation in 2008, the Shein's story It has been that of vertiginous growth to become one of the world's world giants Fast Fashion onlineespecially among young and social networks. Today, it is still one of the most downloaded apps in Spain, month after month. But that model, based on ultra fast production and low prices cycles, has not been exempt from controversies and legal challenges.
For example, Shein has been questioned by poorly transparent working conditions in her factories, with complaints about extensive days and lack of security for workers. In fact, the Swiss Public Eye control agency published a report at the end of 2021 denouncing the existence of insecure workshops, lacking windows and emergency exits, as well as security protocols. They also reported the existence of workers without a contract and abusive work days, reaching 17 hours. A subsequent BBC documentary also questioned the company's work practices.
Image: Shein
