The European Union has issued a warning to Shein, the Chinese ultra-fast fashion retailer, to fix its consumer protection offences, or face consequences.
Authorities in Brussels, alongside national consumer agencies under the Consumer Protection Cooperation (CPC) Network, have found that the way Shein does its business violates EU consumer laws.
The retailer has been officially notified of the breaches and has been given a one-month deadline to respond. If its response is unsatisfactory, enforcement actions, including heavy financial penalties, are on the table.
The EU Commission stated, “Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues. Depending on Shein’s reply, the CPC Network may enter a dialogue with the company.”
This development follows an earlier alert from February, where both Shein and another Chinese e-commerce platform, Temu, were cautioned about the sale of hazardous and substandard products.
Both platforms were told they would be held liable if such products continued to circulate across EU markets.
Shein, which has surged in popularity by selling cheap clothing directly to customers, is now under pressure to align with European standards. The company’s response has so far been measured.
A spokesperson said, “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience.” They also added that Shein is cooperating with national authorities and the EU Commission.
Still, EU regulators aren’t banking on promises. If Shein fails to satisfy the CPC Network’s concerns, member states are empowered to take direct enforcement action.
That includes issuing fines calculated based on Shein’s annual revenue in each country where violations occur. This is about the integrity of Europe’s digital marketplace.
Adding to the company’s challenges, the EU is preparing to impose a €2 handling fee on low-value e-commerce shipments. For a platform that thrives on volume and low prices, this new proposal could eat into profit margins and complicate logistics.
Shein may also fall under the purview of the Digital Services Act, a broad regulatory framework aimed at forcing large online platforms to take more responsibility for the goods and content they allow.
That would bring with it tougher obligations, oversight, and potential penalties if Shein is found lacking.
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