Shein Under Fire: The EU Uncovers Deceptive Practices and Demands Compliance
The European Union (EU) has launched a critical investigation into the popular fast-fashion brand Shein, alleging that the company is violating consumer protection laws through fake discounts and pressure selling tactics. EU Justice Commissioner Michael McGrath emphasized the need for Shein to align its business practices with EU consumer standards or face potential fines tied to its sales within EU nations.
The comprehensive investigation revealed a range of misleading practices that Shein’s customers encounter, such as:
Deceptive product labels
Misleading sustainability claims
Hidden contact details
Inflated price reductions that do not reflect actual prior prices
Creating false urgency by imposing fake deadlines to pressure buyers
The EU also criticized how Shein presents customer reviews and ratings, urging the company to ensure these are not misleading. The EU’s decisive action sends a strong message to all companies targeting EU consumers: compliance with local laws is non-negotiable, regardless of the company’s origin.
In response to the allegations, Shein reaffirmed its commitment to providing a safe and reliable shopping experience for European consumers and stated it is collaborating with EU authorities to address any compliance issues. This isn’t the first time Shein has faced criticism; the company has previously been scrutinized for working conditions in its supply chain, with reports of employees working 75-hour weeks in violation of Chinese labor laws. Additionally, there have been accusations of ”wilful ignorance” regarding the sourcing of cotton during UK parliamentary inquiries. Shein maintains that it is dedicated to improving worker conditions and is investing significantly in governance and compliance efforts, declaring that it strives to uphold the highest standards for pay across its supply chain.