Dive Brief:
- Shein uses “deceptive techniques” intended to push consumers to purchase more, according to a complaint filed with the European Commission on Thursday.
- EU consumer organization BEUC filed the complaint, claiming Shein’s use of “dark patterns” increased the “environmental and societal problems” that fast fashion causes.
- Shein’s practices trigger unwilling spending and economic losses for consumers, the report stated, adding that the company also circulates unsafe clothing across Europe.
Dive Insight:
The consumer group asked Shein to stop using deceptive techniques including toying with consumers’ emotions and using an “infinite scroll” tool. It additionally asked the fast fashion giant to provide evidence that its customer reviews and “low stock” notices are genuine, and if they’re not, to stop using them. The report was based on research that included studies conducted by BEUC members.
If Shein doesn’t take corrective action, the group is asking EU authorities to intervene in order to prevent the risk of serious harm to customers.
In a statement, a Shein spokesperson said the BEUC has rejected Shein’s requests for a meeting over the last several years.
“European consumers would be best served if BEUC agreed to meet with us, allow us to explain our operations, and discuss openly and transparently any concerns they have,” the spokesperson said.
The complaint joins other investigations the European Commission is conducting into Shein, including allegations that the fast fashion company uses fake discounts and pressures consumers. Earlier this year, Shein also provided the Commission with internal documents that detailed risks linked to the potential sale of illegal products on its platform.
The Shein spokesperson said the company is already working constructively with the authorities to demonstrate its compliance with the law.
“[BEUC’s] unwillingness to engage is extremely disappointing, particularly in light of SHEIN’s growing popularity among European consumers who recognize that our platform delivers better value, choice, and affordability at a time when families are increasingly conscious of their spending,” the spokesperson said.
In the release, BEUC Director General Agustín Reyna said the fast fashion model is fuelled by manipulative practices.
“SHEIN is designed to be addictive: it is driven by powerful algorithms to maximise consumer engagement and over-spending,” Reyna said. “We expect a strong and swift response from authorities to put an end to SHEIN’s manipulative practices and to begin an industry-wide investigation.”
The complaint said some of these practices are an industrywide problem and not exclusive to Shein. The group asked the authorities to “look into other traders using similar unfair practices.”
The EU Commission has also previously investigated both Shein and fast fashion competitor Temu regarding compliance with the EU’s Digital Services Act. That investigation resulted in two separate probes for Temu.
