Fake discounts on Shein 'breach law', EU says

Fake discounts on Shein 'breach law', EU says

15 hours ago Share Save Mitchell Labiak Business reporter, BBC News Share Save

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Fake discounts, pressure selling, and other practices on Chinese fast-fashion website Shein breach the law, the European Union (EU) has said. The bloc said it has given Shein one month to respond to its findings or face fines based on its sales in the EU countries where it says it has breached the law. "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 said on Monday its ongoing investigation from the EU's consumer rights enforcer found "a broad range of practices with which consumers are confronted while shopping on Shein and that are in breach of EU law". This included misleading information, deceptive product labels, misleading sustainability claims, and hidden contact details. It also found instances of pretending to offer better deals by showing price reductions that were not based on the actual prior prices, and fake deadlines to put consumers under pressure to buy. The EU has also asked Shein to make sure its product reviews and ratings 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".

Shein backlash