National consumer authorities in Ireland, Belgium, France and the Netherlands, and the European Commission, have called on Shein to rectify several practices on its platform that potentially breach EU consumer law.

The issues identified include “fake discounts” which are allegedly not based on the actual prior practices, pressure selling tactics including the alleged use of false deadlines, and allegedly unclear information regarding consumer rights, including about returns and refunds.

Shein has been given one month to propose commitments on how it will address the issues.

Information has also been requested to assess the company’s compliance with further obligations including those around product rankings, ratings and reviews, and third-party sellers.  

The investigation is being carried out through the European Commission’s Consumer Protection Cooperation (CPC) Network, co-led by Ireland’s Competition and Consumer Protection Commission (CCPC), Belgium’s Directorate General for Economic Inspection, France’s Directorate General for Competition, Consumer Affairs and Fraud Control and the Netherlands’ Authority for Consumers and Markets, under the coordination of the European Commission.

Depending on Shein’s reply, the CPC Network may enter a dialogue with the company.

If Shein fails to address the concerns identified, national authorities can investigate further and may take enforcement measures to ensure compliance, which may include fines based on its annual turnover in the relevant member states.

Henna Virkkunen, the European Commission’s executive vice-president for tech sovereignty, security and democracy, said: “I welcome this coordinated action with consumer authorities – complementary to the Commission’s ongoing request for information sent to Shein under the Digital Services Act.

“In line with the Commission’s recent communication on e-commerce, the action demonstrates our resolve to deliver a coordinated and effective enforcement response when e-commerce platforms and e-retailers don’t respect our laws.

“We come together to keep consumers safe and the e-commerce sector competitive.”

A spokesperson for Shein said: “We have 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.

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