and the distribution of digital products.
Fast-fashion giant Shein now faces EU fines for its deceptive sales practices
The European Union (EU) has stated that Chinese fast-fashion website Shein is in breach of EU law due to practices such as fake discounts and pressure selling, according to BBC. Shein has one month to respond to the EU’s findings or face fines based on sales within the EU.
EU justice commissioner Michael McGrath stated, “It’s now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards.”
According to the EU’s consumer rights enforcer, an ongoing investigation found “a broad range of practices with which consumers are confronted while shopping on Shein and that are in breach of EU law.” These practices included misleading information, deceptive product labels, misleading sustainability claims, and hidden contact details.
The investigation also identified Shein’s practice of creating a false sense of better deals using price reductions that did not reflect actual prior prices, alongside employing fake deadlines to pressure consumers into making purchases. The EU has requested Shein to ensure product reviews and ratings are presented accurately to consumers.
McGrath added, “All companies reaching out to EU consumers must play by our rules. Today’s action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of where they are based.”
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In response to the EU’s inquiry, a Shein spokesperson said the company has been “working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations, and we are continuing to engage in this process to address any concerns”.
Previous scrutiny of Shein’s practices includes a BBC report in January that revealed some staff were working 75-hour weeks, which violates Chinese labor laws. That same month, UK MPs accused Shein of “wilful ignorance” after the retailer’s lawyer declined to answer questions concerning the source of its cotton.
Regarding the BBC investigation, Shein stated it is “committed to ensuring the fair and dignified treatment of all workers within our supply chain” and is investing millions to strengthen governance and compliance. Shein also said, “We strive to set the highest standards for pay and we require that all supply chain partners adhere to our code of conduct.”