EU accuses Shein of being in ‘breach of law’ over fake discounting

The EU said it has given the Singapore-based fast fashion giant one month to respond to its findings or face fines based on its sales across the bloc where it has breached the law, according to the BBC.

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

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

The EU noted on Monday that its ongoing investigation into Shein by its consumer rights watchdog had found “a broad range of practices with which consumers are confronted while shopping on Shein and that are in breach of EU law”.

These include misleading product information, deceptive product labels, misleading sustainability claims and hidden contact details.

It also found instances of Shein pretending to offer better deals by showing price reductions that were not based on actual prior price, and fake deadlines for deals that put consumers under pressure to buy.

The EU has also called on the fast fashion giant to make sure its product reviews and rating 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,” said McGrath.

A Shein spokesperson said 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”.