The European Union has given Chinese fast-fashion giant Shein one month to fix what regulators call widespread violations of consumer protection laws, including misleading price reductions and deceptive sales tactics that could result in fines worth up to 6% of the company's global revenue.
The EU's Consumer Protection Cooperation Network found that Shein regularly displays "fake discounts" by showing price cuts that don't reflect actual previous prices, alongside phony purchase deadlines designed to pressure customers into buying. Investigators also discovered deceptive product labels that falsely suggest items have special features when those characteristics are legally required, and misleading sustainability claims that don't match reality.
Additional violations include hiding company contact information from customers, providing incomplete refund policies, and making it difficult for consumers to reach customer service representatives when problems arise.
One month deadline for Shein to address violations
The investigation comes as Shein faces increasing scrutiny in both Europe and the United States. Last year, the EU designated Shein as a "very large online platform" under the Digital Services Act, subjecting it to stricter rules requiring the removal of illegal goods and content. Companies that violate these regulations can face fines reaching 6% of their worldwide turnover.
Meanwhile, Shein has already raised prices in response to new U.S. tariffs imposed by President Trump and the elimination of duty-free shipping rules for low-cost Chinese packages.
The retailer, which manufactures most products in China, has previously faced criticism for labor practices, with a BBC investigation revealing workers putting in 75-hour weeks in violation of Chinese labor laws.
"We will not shy away from holding e-commerce platforms to account, regardless of where they are based," said EU Justice Commissioner Michael McGrath.
Shein must respond to the EU's findings by late June or face penalties based on its sales in affected member countries.
The EU's Consumer Protection Cooperation Network found that Shein regularly displays "fake discounts" by showing price cuts that don't reflect actual previous prices, alongside phony purchase deadlines designed to pressure customers into buying. Investigators also discovered deceptive product labels that falsely suggest items have special features when those characteristics are legally required, and misleading sustainability claims that don't match reality.
Additional violations include hiding company contact information from customers, providing incomplete refund policies, and making it difficult for consumers to reach customer service representatives when problems arise.
One month deadline for Shein to address violations
The investigation comes as Shein faces increasing scrutiny in both Europe and the United States. Last year, the EU designated Shein as a "very large online platform" under the Digital Services Act, subjecting it to stricter rules requiring the removal of illegal goods and content. Companies that violate these regulations can face fines reaching 6% of their worldwide turnover.
Meanwhile, Shein has already raised prices in response to new U.S. tariffs imposed by President Trump and the elimination of duty-free shipping rules for low-cost Chinese packages.
The retailer, which manufactures most products in China, has previously faced criticism for labor practices, with a BBC investigation revealing workers putting in 75-hour weeks in violation of Chinese labor laws.
"We will not shy away from holding e-commerce platforms to account, regardless of where they are based," said EU Justice Commissioner Michael McGrath.
Shein must respond to the EU's findings by late June or face penalties based on its sales in affected member countries.
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