EU consumer groups accuse Shein for breaking EU rules

According to European consumer protection authorities, the discount retailer Shein is violating EU rules for online marketplaces in numerous cases. Among other things, Shein deceives its customers with false discounts and misleading information about product returns, the EU Commission announced on Monday. The investigation against the online retailer is ongoing.

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According to the information, investigators discovered offers where a fictitious starting price was stated, making the discount appear as large as possible. Consumer protection authorities also believe Shein is pressuring its customers with false deadlines.

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In addition, misleading labeling on the platform makes consumers believe that a product is particularly sustainable or easy to repair, even if the advertised features are already required by law. The authorities also complained that the company's customer service is difficult for consumers to reach.

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The online retailer primarily sells so-called fast fashion, i.e., cheap clothing, online. The company was founded in China in 2012 and is now headquartered in Singapore. According to consumer protection associations, customer complaints about poor quality items or misleading return information are increasing.

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Brussels is also investigating Shein's illegal offerings and data protection practices. As a result, the Commission could initiate proceedings for alleged violations of EU rules on online marketplaces, which could result in the company facing heavy fines.