The EU has accused Shein of breaching consumer laws through fake discounts, misleading information, and unethical sales tactics, demanding compliance from the company in a month or risk fines.
EU Takes Action Against Shein for Deceptive Practices and False Discounts
EU Takes Action Against Shein for Deceptive Practices and False Discounts
The European Union has flagged Shein for numerous deceptive practices, giving the fast-fashion retailer one month to respond or face penalties.
The European Union (EU) has formally accused Chinese fast-fashion giant Shein of employing deceptive sales tactics that violate EU consumer protection laws. The identified practices, including misleading discounts, pressure selling, and unfounded sustainability claims, prompted the EU to demand a response from Shein within one month or face potential fines based on its European sales.
EU Justice Commissioner Michael McGrath emphasized that Shein must align its business practices with EU consumer standards, urging the company to rise to the challenge. In response, a Shein spokesperson reiterated their commitment to providing European consumers with a secure and enjoyable online shopping experience.
The EU's investigation revealed a variety of concerning practices consumers face while shopping on Shein’s platform. Instances of false advertising were identified, where Shein presented price cuts not reflective of actual prior prices, alongside fake urgency tactics to pressure customers into purchases. The investigation also highlighted misleading product labels and difficulty accessing credible contact information for customer service.
McGrath asserted that accountability is paramount, stating that all companies engaging with EU consumers must abide by established regulations. The efforts to tackle such deceptive practices illustrate a broader commitment to uphold consumer rights across the digital shopping landscape.
Shein, which has previously faced scrutiny over labor practices, has declared its intent to collaborate with national authorities and the EU Commission to ensure adherence to regulations and outlined its initiatives to improve compliance and governance throughout its supply chain. Despite past controversies, Shein’s business remains robust, with consumers expressing continued support even amid ongoing allegations surrounding its labor and pricing practices.
