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EU Threatens Shein With Fines Over Fake Discounts and Misleading Sales Tactics

Brussels regulators have given the fast-fashion retailer one month to remedy alleged breaches of consumer protection law or face fines under EU digital services rules.

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Overview

  • The EU’s Consumer Protection Cooperation Network identified multiple breaches in Shein’s sales practices, including fake discounts, pressure-selling tactics, deceptive product labels, misleading sustainability claims and hidden customer service details.
  • Shein has until June 26 to submit binding commitments to address the findings or risk fines calculated on its annual turnover in affected EU member states.
  • Regulators are also probing Shein’s transparency on product rankings, customer reviews and the disclosure of third-party seller contracts on its platform.
  • As a designated “very large online platform” under the Digital Services Act, Shein could face additional penalties reaching up to 6 percent of global revenue for non-compliance.
  • Separately, the EU has proposed a €2 handling fee on low-value e-commerce shipments, a measure that may raise delivery costs for Shein’s budget-focused customers.