The European Commission, in collaboration with the Consumer Protection Cooperation (CPC) network, has formally warned Chinese online fashion giant SHEIN to address a series of violations identified on its platform or face potential regulatory action, the Register reports.
Following an investigation, the Commission concluded that several practices on SHEIN’s website breach European Union consumer protection laws. Among the key concerns are deceptive discounting tactics, where price reductions are shown without a valid reference to prior prices, and pressure-selling techniques that prompt shoppers to make hasty decisions, often under false pretenses such as fake deadlines.
Authorities also cited incomplete or misleading information about consumer rights, including returns and refunds, product labeling that suggests added value when features are simply legal requirements, and claims about sustainability that may not accurately reflect the environmental impact of products. Additionally, consumers face difficulty reaching SHEIN for support, as essential contact details are not easily accessible.
The EU has also requested clarity from SHEIN on several fronts, including how it manages and displays product reviews and rankings, and how it informs users about purchases involving third-party sellers on its platform.
SHEIN has been given one month to respond to these findings and outline corrective measures. Failure to do so may result in fines or other penalties imposed by individual EU member states.
This scrutiny adds to SHEIN’s growing regulatory challenges globally. In the United States, the e-tailer has recently been hit with new tariffs and the loss of the de minimis exemption, which previously allowed small-value imports to bypass duties—an essential aspect of SHEIN’s low-cost business model.
Beyond regulatory compliance, SHEIN has long faced criticism regarding product quality, labor practices among suppliers, and the environmental costs associated with fast fashion. These concerns have fueled public campaigns such as “Shut Down SHEIN,” which calls for stricter oversight of the retailer in major Western markets.
While such regulatory pressure is not unusual from Western governments, China sees SHEIN and similar firms as strategic assets. In 2024, the Ministry of Commerce named cross-border e-commerce a key pillar of national economic development, encouraging state and private support to help these companies expand globally.
SHEIN reportedly generated around $38 billion in revenue in 2024.
