Fake discounts on Shein ‘breach law’, EU says

Fake discounts, pressure selling, and other practices on Chinese fast-fashion website Shein breach the law, the European Union (EU) has said.

The bloc said it has given Shein one month to respond to its findings or face fines based on its sales in the EU countries where it says it has breached the law.

“It’s now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards,” said EU justice commissioner Michael McGrath.

A Shein spokesperson said: “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience.”

The EU said on Monday its ongoing investigation from the EU’s consumer rights enforcer found “a broad range of practices with which consumers are confronted while shopping on Shein and that are in breach of EU law”.

This included misleading information, deceptive product labels, misleading sustainability claims, and hidden contact details.

It also found instances of pretending to offer better deals by showing price reductions that were not based on the actual prior prices, and fake deadlines to put costumers under pressure to buy.

The EU has also asked Shein to make sure its product reviews and ratings are “not presented to consumers in a misleading manner”.

“All companies reaching out to EU consumers must play by our rules. 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,” said McGrath.

A Shein spokesperson said it has been “working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations, and we are continuing to engage in this process to address any concerns”.

Shein has come under fire for its business practices before, with a January BBC report revealing some staff were working 75-hour weeks, in breach of Chinese labour laws.

That same month, Shein was accused of “wilful ignorance” by MPs in the UK after its lawyer repeatedly refused to answer questions about where the retailer sources its cotton.

In response to the BBC investigation into worker conditions, Shein said it is “committed to ensuring the fair and dignified treatment of all workers within our supply chain”, and that it is investing tens of millions of dollars in strengthening governance and compliance.

“We strive to set the highest standards for pay and we require that all supply chain partners adhere to our code of conduct,” it said.