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SHEIN urged to respect EU consumer protection laws

Today, following a coordinated investigation at European level, the Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission notified the online marketplace and e-retailer SHEIN of a number of practices on its platform that infringe EU consumer law. The CPC Network directed SHEIN to bring those practices in line with EU consumer laws. SHEIN remains under investigation and was requested to provide further information to the CPC Network.

The CPC Network's action against SHEIN is led by the competent national authorities of Belgium, France, Ireland and The Netherlands, under the coordination of the European Commission.

Key elements of the CPC Network's coordinated action

The investigation covers a broad range of practices with which consumers are confronted while shopping on SHEIN and that are in breach of EU law, including:

  • Fake discounts
  • Pressure selling
  • Missing, incorrect and misleading information
  • Deceptive product labels
  • Misleading sustainability claims
  • Hidden contact details

In addition, the CPC Network requested information from SHEIN to assess its compliance with further obligations under EU consumer law, such as the obligation to ensure that product rankings, reviews, and ratings are not presented to consumers in a misleading manner. The Network is also investigating whether SHEIN informs consumers about how the obligations under the contract are shared between a third-party seller and SHEIN (where applicable) and that consumer rights do not apply to the contract in cases where the third-party seller is not a trader.

This enforcement action is complementary to the ongoing Digital Services Act (DSA) inquiry conducted by the Commission. Both actions aim at ensuring a safe and trustworthy online environment where the rights of consumers in Europe are fully protected.

Next Steps

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. If SHEIN fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance. This includes the possibility to impose fines based on SHEIN's annual turnover in the EU Member States concerned.

Find more information about the background in the source description.

Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1331 

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