EU authorities call on Shein to stop misleading consumers

European competition authorities, including the ACM in the Netherlands, have told online fashion brand Shein to stop a number of website actions which they say breach EU consumer protection law.

In particular, they want the fast fashion retailer to stop offering fake discounts by showing price reductions that are not based on actual previous prices, as required under EU law.

They have also criticised the website’s use of false deadlines to pressure consumers into making quick purchases, its misleading sustainability claims, failure to provide clear information about consumers’ rights to refunds and returns, and the difficulty of contacting the company with questions or complaints.

The consumer bodies, working together in the European Commission’s Consumer Protection Cooperation (CPC) network, also want more transparency from the company regarding its compliance with rules on ratings, reviews and third-party sellers.

Shein now has one month to respond to the complaint. If it fails to do so, the company could face fines based on its annual turnover in the relevant EU countries.

“Shein is active in many EU countries, and because it is breaching consumers’ rights in all these countries, it is important to act together,” said Martijn Ridderbos from Dutch consumer rights group ACM.

“Together we will make sure these breaches are halted, which will be good for consumers and for online retailers who do stick to the rules.”

Consumer authorities in the Netherlands, Belgium, France, Germany and Ireland were involved in the joint complaint.