The European Commission has launched a formal investigation into Shein, amid suspicions of consumer protection violations in the European market.
The probe, which is being conducted in collaboration with the Consumer Protection Cooperation (CPC) Network, raises concerns that the Chinese fast fashion giant is engaging in unfair commercial practices and potentially violating EU consumer laws.
Brussels’ inquiry focuses on whether Shein’s business practices, including misleading price reductions, unfair contract terms, and the sale of potentially unsafe or counterfeit goods, violate European consumer protection standards.
A Shein spokesperson said: “We welcome efforts that enhance trust and safety for European consumers when shopping online, and believe that a level competitive playing field can benefit the entire ecosystem.
“Our regulatory and compliance teams across the EU will engage our partners at EU and national government-level to study these recommendations and examine how Shein can play our part in strengthening our industry to enhance the online shopping experience for European consumers.”
-
Related Story
-
Shein’s investigation follows a wider crackdown by the EU on Chinese e-commerce platforms that have flooded the European market with low-value goods.
In recent months, the Commission has moved to address concerns over quality, environmental impact, and unfair business practices. These concerns are particularly pertinent given the rapid growth of platforms like Shein and Temu, which have faced scrutiny over the safety and authenticity of their products.
In conjunction with the Shein probe, the Commission introduced a “toolbox” aimed at addressing the challenges posed by ecommerce giants that fail to comply with EU regulations. The toolbox includes proposals for customs reform, enhanced product safety measures, and tighter controls over online platforms, with particular focus on protecting consumers from deceptive practices such as fake discounts and addictive website designs.
As the probe continues, Shein is also facing increased pressure from UK lawmakers. Recently, the fast-fashion retailer was accused of failing to address questions about the integrity of its supply chain, particularly regarding its sourcing practices in Xinjiang, an area linked to forced labour allegations.
While this week, the Chinese retailer was hit with more hurdles with its £50bn London IPO at risk after US President Donald Trump moved to close a tax loophole that is crucial to the fast fashion retailer’s business model.
Over the weekend, Trump vowed to ditch the de minimis exemption for small packages worth under £645 shipped from Canada, China, and Mexico to the US.
Click here to sign up to Retail Gazette‘s free daily email newsletter
