Shein faces EU scrutiny over consumer law violations

[EUROPE] Shein could be hit with fines after the European Union issued a warning to the fast-growing e-commerce platform on Monday, citing a series of practices that violate the bloc’s consumer protection rules — including deceptive discount promotions and misleading product descriptions.

The warning follows a February investigation launched by the European Commission in coordination with consumer authorities from Belgium, France, Ireland, and the Netherlands. The probe also raised alarms over another Chinese-founded platform, Temu, particularly regarding the sale of unsafe or hazardous goods.

Shein now has one month to respond and outline how it plans to address the violations identified during the investigation. According to the Commission, users were subjected to high-pressure sales tactics on the platform, such as “false purchase deadlines” designed to rush buying decisions.

In response, a Shein spokesperson stated the company is cooperating with EU authorities to resolve the issues. “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience,” the spokesperson said.

Beyond consumer manipulation, the EU also criticized Shein for allegedly misrepresenting the environmental impact of its products. The company could soon face additional regulatory burdens under the EU’s Digital Services Act, which aims to impose stricter accountability measures on major online platforms.

Adding to the pressure, the EU has proposed a €2 (approximately $2.27) handling fee on low-value shipments, a move that could disproportionately impact Shein’s business model, which relies heavily on low-cost, direct-to-consumer sales.

Shein is not alone in the spotlight. The EU has stepped up enforcement of consumer protection laws across the digital marketplace, placing several e-commerce platforms under similar scrutiny. The latest actions underscore the growing emphasis on transparency and regulatory compliance in the fast-evolving online retail landscape.