The European Commission, alongside the Consumer Protection Cooperation Network (CPC), has intensified scrutiny of SHEIN, the prominent Chinese online retailer, by setting a strict EU compliance deadline.
SHEIN must urgently address significant consumer protection violations uncovered during a coordinated Europe-wide investigation involving national authorities from Belgium, France, Ireland, and the Netherlands, led by the European Commission.
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SHEIN EU compliance deadline: Detailed allegations
According to the press release shared by the European Commission, the CPC’s comprehensive investigation highlighted several critical breaches of EU consumer rights on SHEIN’s platform, including:
- Fake discounts: Promoting misleading price reductions that do not reflect genuine previous prices.
- Artificial time pressure (pressure selling): Utilizing misleading countdown timers and artificial deadlines to encourage hasty purchasing decisions.
- Misleading and incomplete information: Providing incorrect, incomplete, or misleading information on consumers’ rights regarding product returns and refunds.
- Deceptive product labels: Suggesting certain product features as special or voluntary, despite these features being mandatory under EU law.
- Greenwashing claims: Making sustainability claims that lack credible substantiation, misleading eco-conscious consumers.
- Hidden contact information: Making it difficult for customers to reach SHEIN’s customer support, violating accessibility requirements.
Additionally, SHEIN must provide further information to the CPC network regarding its compliance with EU consumer law obligations, such as accurately presenting product rankings, reviews, and clearly communicating the contractual responsibilities between SHEIN and third-party sellers.
Additional regulatory pressure under DSA
Since April 2024, SHEIN has been classified as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA). This classification imposes additional obligations on SHEIN, including mandatory assessments of systemic risks associated with its services, transparency in algorithmic recommendations, handling of illegal content, and risk mitigation measures concerning consumer protection and public health.
SHEIN EU compliance deadline is short
SHEIN now has a strict 30-day period to respond comprehensively to the CPC’s findings and propose concrete measures to correct the identified violations. Failure to provide a satisfactory response or implementation plan could lead national authorities to impose severe financial penalties based on SHEIN’s revenues in respective EU countries.
Broader EU enforcement efforts
The actions against SHEIN are part of a broader EU strategy, aligned with the recent EU communication on a comprehensive toolbox for safe and sustainable e-commerce. This coordinated enforcement by the CPC complements ongoing investigations under the DSA, aiming to establish a secure, trustworthy online environment in Europe.
The coordinated action does not impact ongoing or future national procedures, such as the investigation by Italy’s Competition Authority, nor does it limit potential market surveillance actions concerning product safety.
EU sends clear message to global online retailers
The SHEIN EU compliance deadline underscores the EU’s strong commitment to consumer protection. The coordinated regulatory effort signifies to global e-commerce companies that compliance with EU consumer standards is non-negotiable. SHEIN faces a pivotal moment—swiftly adapting its practices or risking significant fines and potential exclusion from the European market.
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