European Commission Accuses Shein of Deceptive Sales Practices

The company allegedly made it difficult for consumers to contact it for complaints or queries.

The logo of fast fashion e-commerce company Shein outside its office in Guangzhou, southern China, on June 11, 2024. Jade Gao/AFP via Getty Images

An investigation by the European Commission of the European Union (EU) and multiple national consumer authorities has found online retailer Shein to have allegedly engaged in a “number of practices on its platform that infringe EU consumer law,” the commission said.

Shein was found to be allegedly offering fake discounts by advertising price reductions that were not based on the actual pre-discount prices of the products. The company put consumers under pressure to complete purchases by using tactics such as false purchase deadlines, the commission said in a May 25 statement.

The company displayed “incomplete and incorrect information” regarding the legal rights of consumers to return goods and receive refunds, the commission alleged, noting that Shein also failed to process returns and refunds in accordance with existing consumer laws.

Shein is accused of providing “false or deceptive information” about their products’ sustainability benefits, the statement said.

As for customer service, Shein allegedly hid its contact details so that consumers cannot easily contact the company for questions or complaints, according to the statement.

The commission carried out the investigation with the Consumer Protection Cooperation (CPC) Network, an association of national consumer authorities from Europe. CPC Network’s action against Shein was led by authorities from the Netherlands, France, Belgium, and Ireland.

“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,“ the commission said. ”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.”

The Epoch Times reached out to Shein for comment and did not receive a response by publication time.

Shein, headquartered in Singapore, was founded by Chinese billionaire Sky Xu in Nanjing, China, in 2008. The company sells cheap fashion goods from China directly to customers around the world.

Earlier in February, the European Commission asked Shein to submit internal documents and other information related to the presence of “illegal content and goods” on its platform. It also sought details on how the company protects users’ personal data.

In 2024, the commission and the CPC Network found that Temu, another marketplace selling cheap Chinese goods directly to customers, had violated several EU consumer protection laws by engaging in practices such as offering fake discounts and fake reviews, as well as pressure-buying tactics.

Human Rights Concerns

In an April 29 op-ed, China observer Anders Corr, contributor to The Epoch Times and founder of Corr Analytics Inc., suggested forcing Shein to move supply chains away from China to protect democratic interests.

Shein has been accused of using forced labor in China and of using false imprisonment, racketeering, and mafia-style intimidation of suppliers, according to Corr. Shein tried to go public on the U.S. stock market, an attempt that the United States stopped in 2024.

“Shein’s supply chains should be fully removed from China before any international IPO,“ Corr wrote. ”The production should be moved not only out of China but also out of all authoritarian countries, including Vietnam.

“Otherwise, international investors are essentially continuing to invest in authoritarian countries. It’s time for democracies to use their purchasing power for good, not just for the cheapest fast fashion they can find.”

On Aug. 22, 2024, Shein released its 2023 sustainability report, in which the company confirmed that there were two instances of child labor in its supply chains. Child labor refers to individual workers under the age of 15, or under the legal minimum age for employment in their specific region or country. Shein said it suspended contracts with manufacturers and only resumed working with them after tackling the issue.

“Errant suppliers [were] given 30 days to remediate their offenses,” the report reads. “Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/legal guardians as needed.”

Shein has been negatively affected by the Trump administration’s tariff policies against China, as many of its products are manufactured in the country.

In April, President Donald Trump signed an executive order to end the “de minimis” exemption for China and Hong Kong that allowed goods valued at $800 or less to be imported without being subject to duties. Beginning on May 2, the United States started collecting a 120 percent duty on packages valued at $800 or less.

Before the tariff came into effect, Shein said in a U.S. customer notice that it would be making “price adjustments” beginning on April 25.

On May 12, the United States and China announced a temporary reduction in reciprocal tariffs. Following this announcement, the Trump administration reduced the tariff on goods valued at $800 or less to 54 percent.

On May 14, Shein issued a “price drop alert” for the United States, saying it lowered prices on various items.