Fake discounts on Shein 'breach law', EU says

The European Union (EU) has recently raised concerns about the practices of Shein, a well-known online fast-fashion retailer. According to the EU, Shein has been engaging in misleading practices such as fake discounts and pressure selling, which violate consumer protection laws. The EU has given Shein a month to respond to these findings or face potential fines based on their sales in EU countries. Michael McGrath, the EU's justice commissioner, stated, 'It's now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards. ' In response, a Shein spokesperson emphasized their commitment to providing a safe and enjoyable shopping experience for European consumers. The EU's investigation revealed a wide range of issues that consumers encounter while shopping on Shein. These include misleading product information, deceptive labeling, false sustainability claims, and hidden contact details. Additionally, the EU found that Shein was misleading customers by showing price reductions that were not based on actual previous prices, as well as creating fake deadlines to pressure consumers into making purchases. The EU has also requested that Shein ensure that product reviews and ratings are presented honestly to consumers. McGrath reiterated that all companies selling to EU consumers must adhere to the established rules, stating, 'Today's action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of where they are based. ' Shein has faced backlash in the past for its business practices, including accusations of violating labor laws in China. In a recent investigation, Shein was criticized for not providing clear answers about the sourcing of its cotton. In response to these allegations, Shein stated that they are dedicated to ensuring fair treatment for all workers in their supply chain and are investing significant resources to improve governance and compliance. They aim to uphold high standards for pay and require all partners in their supply chain to follow their code of conduct. To promote their brand, Shein collaborates with influencers and reality TV stars, which helps them reach a wider audience.