Dive Brief:
- Some of Shein’s practices infringe on European Union consumer protection laws, according to a notice from the European Commission on Sunday.
- The fast fashion company must respond to the Commission’s findings within one month and propose commitments for how it will address the identified issues. If Shein doesn’t address the concerns, national authorities of Belgium, France, Ireland and the Netherlands can take enforcement measures to ensure compliance, which could include fines, per the announcement.
- Shein remains under investigation by the EU’s Consumer Protection Cooperation Network.
Dive Insight:
The findings were part of the European Commission’s previously announced investigation into the fast fashion giant for allegedly violating the EU’s consumer protection laws.
While the EU’s notice on Sunday didn’t specifically name which consumer protection laws Shein violated, the investigation focuses on the possibility that Shein offers fake discounts, pressures consumers, uses misleading information and sustainability claims, engages in deceptive product labeling and hides its contact details.
"We have 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," a Shein spokesperson said in an email. "Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience."
In February, the European Commission asked Shein to provide internal documents about its recommender system and the risks linked to the potential sale of illegal products on its platform. In response, Shein said it planned to invest more than $15 million into its product safety testing and compliance tools.
The consumer protection law investigation is complementary to a separate European Commission investigation announced last year to examine Shein’s compliance with the Digital Services Act, per the notice. That investigation also included Shein’s fast fashion competitor Temu, and resulted in two separate probes into Temu.
Shein has faced regulatory challenges from several countries, including in the U.S., Vietnam and Italy.
Editor's note: This story has been updated to include Shein's response.
