Fake discounts on Shein ‘breach law’, EU says

Pretend reductions, strain promoting, and different practices on Chinese language fast-fashion web site Shein breach the regulation, the European Union (EU) has mentioned.

The bloc mentioned it has given Shein one month to reply to its findings or face fines primarily based on its gross sales within the EU nations the place it says it has breached the regulation.

“It’s now for Shein to step up, respect the rules and bring its practices fully in line with EU consumer standards,” mentioned EU justice commissioner Michael McGrath.

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

The EU mentioned on Monday its ongoing investigation from the EU’s client rights enforcer discovered “a broad range of practices with which consumers are confronted while shopping on Shein and that are in breach of EU law”.

This included deceptive info, misleading product labels, deceptive sustainability claims, and hidden contact particulars.

It additionally discovered situations of pretending to supply higher offers by displaying value reductions that weren’t primarily based on the precise prior costs, and faux deadlines to place shoppers below strain to purchase.

The EU has additionally requested Shein to verify its product critiques and rankings are “not presented to consumers in a misleading manner”.

“All companies reaching out to EU consumers must play by our rules. 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,” mentioned McGrath.

A Shein spokesperson mentioned it has 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”.

Shein has come below fireplace for its enterprise practices earlier than, with a January BBC report revealing some staff were working 75-hour weeks, in breach of Chinese language labour legal guidelines.

That very same month, Shein was accused of “wilful ignorance” by MPs in the UK after its lawyer repeatedly refused to reply questions on the place the retailer sources its cotton.

In response to the BBC investigation into employee situations, Shein mentioned it’s “committed to ensuring the fair and dignified treatment of all workers within our supply chain”, and that it’s investing tens of tens of millions of {dollars} in strengthening governance and compliance.

“We strive to set the highest standards for pay and we require that all supply chain partners adhere to our code of conduct,” it mentioned.