The European Union (EU) has raised serious concerns about Shein, the Chinese fast-fashion retail giant, claiming the company employs practices that breach consumer protection laws. The EU has given Shein a one-month deadline to respond to their findings, which include accusations of fake discounts and high-pressure sales methods. EU justice commissioner Michael McGrath emphasized the importance of compliance with EU consumer standards, stating that Shein must "step up" and rectify its practices.
According to the EU’s investigation led by its consumer rights enforcer, Shein has been engaging in misleading marketing tactics that misinform consumers during their shopping experience. This includes deceptive product labels, misleading sustainability claims, and hiding contact information from customers. One significant issue flagged was Shein’s practice of artificially inflating original prices to create the illusion of substantial discounts, alongside utilizing fake time constraints to urge customers into making quick purchase decisions.
McGrath insisted that all e-commerce platforms targeting EU consumers must adhere to established regulations. He stated that this enforcement action signals the EU's determination to hold businesses accountable, irrespective of their location. A Shein spokesperson responded by affirming the company's commitment to providing a secure and dependable online shopping experience for European customers.
The retailer has previously faced backlash over labor practices, with reports revealing severe working conditions that violated Chinese labor laws. Shein also stirred controversy in the UK for not disclosing the origins of its cotton supply, leading to accusations of "willful ignorance" from lawmakers. In response to these labor concerns, Shein pledged to ensure respectful treatment of workers within its supply chain, stating its intention to invest significantly in governance and compliance measures.
