E-commerce: EU probes Shein over consumer protection violations

Brussels – Ensuring a secure and transparent digital environment for European consumers while respecting the rules in force: this is the aim of the latest joint action, launched by the EU Commission and the national authorities of Belgium, France, Ireland, and the Netherlands, coordinated through the CPC (Consumer Protection Cooperation) network, against the Chinese e-commerce platform Shein. The investigation uncovered several business practices that violate European consumer protection law. After today’s (May 26) notification, Shein has one month to respond to the complaints and propose corrective measures.

According to the findings, the violations concern multiple aspects of the platform’s online shopping experience. These include fake discounts — price reductions not based on real previous prices — pressure selling techniques, such as artificial countdowns to push users to buy quickly and missing or misleading information about cancellation and refund rights. Also contested are deceptive product labels that make particular product features look special when, in fact, the relevant feature is required by law, misleading sustainability claims, and the lack of transparency in contact details, which makes it difficult for consumers to submit complaints or request assistance. Additionally, the CPC network has requested further clarification from Shein to verify the platform’s compliance regarding product classifications, reviews, and ratings and how Shein discloses the division of contractual responsibilities between Shein and third-party sellers. EU law requires that consumers are always informed about who the actual seller is and what rights apply.

The CPC’s action, which complements the initiatives already undertaken by individual national authorities — including the Autorità Garante della Concorrenza e del Mercato (AGCM) in Italy — ties in with the investigation currently being conducted by the Commission under the Digital Services Act (DSA), which imposes on large platforms, such as Shein, designated as a VLOP (Very large online platform) since April 26, 2024, enhanced obligations to manage systemic risks, including those related to consumer protection.

Henna Virkkunen, Executive Vice-President of the European Commission responsible for Technological Sovereignty, commented on the outcome of the investigation, saying that it “demonstrates our determination to provide an effective and coordinated response when online platforms and retailers do not play by the rules.” Michael McGrath, Commissioner for Democracy, Justice, Rule of Law and Consumer Protection, reiterated the Union’s message: “All companies that target consumers in the EU must abide by our rules. EU consumer protection laws are not optional: they must be applied in all cases”.

Should Shein fail to respond satisfactorily to the complaints, national authorities may take enforcement measures, including economic fines proportionate to the company’s turnover in the respective Member States.