Retail giant Shein under fire for alleged EU law violations through deceptive sale methods
The European Union has accused Shein, a prominent online fast-fashion retailer, of breaching EU consumer laws through the use of deceitful marketing tactics. According to an investigation conducted by the European Commission and national consumer protection authorities, the company is engaging in illegal practices such as offering false discounts, creating artificial urgency with countdown timers, and making deceptive sustainability claims.
The investigation found that Shein exploits consumer psychology by displaying allegedly high original prices and then offering seemingly significant discounts. Additionally, the company's unclear return policies, confusing product labels, and difficult-to-reach customer service contribute to a lack of transparency.
The EU has given Shein one month to address these issues, and if no progress is made, the company could face fines. National authorities from Belgium, France, Ireland, and the Netherlands will oversee enforcement.
Michael McGrath, Commissioner for Justice and Consumer Protection, emphasized that all companies operating in the EU must adhere to the region's consumer protection rules. "Today's action sends a clear message: we will not hesitate to hold e-commerce platforms accountable, regardless of their location," he stated.
This is not the first time a Chinese e-commerce platform has been under scrutiny. In November, the EU found rival e-retailer Temu in breach of similar consumer laws.
Both Shein and Temu are also under investigation for possible breaches of the Digital Services Act, focusing on algorithmic recommendation systems and the sale of illegal goods.
- The exploitation of technology-driven marketing tactics, such as false discounts and countdown timers, is a concern for regulatory bodies, as seen in the case of Shein and the investigation into their compliance with EU consumer laws.
- The Digital Services Act is another area of concern for global e-commerce platforms like Shein, as both Shein and Temu are under investigation for potential breaches related to algorithmic recommendations and the sale of illegal goods.
