The warning comes from the European Commission (EC), along with the Competition and Consumer Protection Commission (CCPC) and consumer authorities from Belgium, France, and The Netherlands following an investigation.
The company’s platform is accused of practices that infringe upon EU consumer laws.
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Alleged violations by Shein include: Displaying false discounts by showing price reductions not reflective of actual ‘prior prices’; employing pressure selling techniques such as misleading purchase deadlines; providing incomplete, incorrect, or misleading information regarding consumers’ rights to return goods and receive refunds and failing to process these in accordance with relevant rights; using deceptive product labels that imply special features when such features are mandated by law; making misleading claims about the sustainability of products; concealing contact details, making it difficult for consumers to reach out with questions or complaints.
Shein has been told to “bring those practices in line with EU consumer laws”.
CCPC Commission member Patrick Kenny said: “Consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts. They also need clear information about how consumers can contact the company, how to return an item and receive a refund. In this case, the CCPC and the CPC Network have identified several practices that could mislead consumers or undermine their consumer rights. The CCPC takes any breaches of the law very seriously and looks forward to constructive engagement with Shein during the course of this investigation.”
The Consumer Protection Cooperation (CPC) Network has also asked the brand for additional information to assess the company’s adherence to further requirements. This includes ensuring that rankings, reviews, and ratings are not misleadingly presented.
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By GlobalDataThe network is conducting an inquiry to determine if Shein adequately discloses to customers the distribution of contractual responsibilities between itself and any third-party sellers, when relevant, and whether it clarifies that consumer protections may not be applicable in instances where the third-party seller is not a commercial entity.
The enforcement action is part of a broader initiative that includes an inquiry under the Digital Services Act (DSA) to promote a secure and trustworthy online environment where European consumers’ rights are safeguarded.
EC tech sovereignty, security and democracy executive vice-president Henna Virkkunen 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.”
The company has been granted one month to formulate a response to the observations made by the CPC Network and to outline their intended measures for rectifying the consumer law violations that have been pinpointed.
The relevant national authorities possess the authority to enforce regulatory compliance if Shein neglect to adequately remedy the issues highlighted by the CPC Network.
This enforcement may encompass the levying of fines, which could be calculated as a percentage of Shein’s annual revenue within the implicated EU Member States.
EC democracy, justice, the rule of law and consumer protection commissioner Michael McGrath said: “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. EU consumer protection laws are not optional—they must be applied in all cases. I strongly welcome the decisive action taken by the CPC Network. It’s now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards.”
Shein did not return request for comment when approached by Just Style.
In February this year, Shein welcomed the EU’s quest to enhance online safety after the EC announced measures to address potential risks associated with inexpensive imports from online retailers based outside the EU.
