Online retailer Shein has been put on notice by the European Commission after it identified a number of practices on its platform that infringe EU consumer law.
Shein now has one month to reply to the findings and propose commitments on how they will address the identified consumer law issues. If the group fails to address the concerns raised, national authorities can take enforcement measures to ensure compliance.
This includes the possibility of fines based on Shein’s annual turnover in the EU Member States concerned.
Some of the specific concerns which were raised include:
- Fake discounts: Pretending to offer better deals by showing price reductions that are not based on the actual ‘prior prices’.
- Pressure selling: Putting consumers under pressure to complete purchases using tactics like false purchase deadlines.
- Missing, incorrect and misleading information: Displaying incomplete and incorrect information about consumers’ legal rights to return goods and receive refunds and failing to process returns and refunds in accordance with consumers’ relevant rights.
- Deceptive product labels: Using product labels that suggest that the product offers something special when, in fact, the relevant feature is required by law.
- Misleading sustainability claims: Providing false or deceptive information about the sustainability benefits of its products.
- Hidden contact details: Consumers cannot easily contact Shein for questions or complaints.
In addition, the Commission has requested information from Shein to assess its compliance with further obligations under EU consumer law, such as the obligation to ensure that product rankings, reviews, and ratings are not misleadingly presented to consumers.
It is also investigating whether Shein informs consumers about how the obligations under the contract are shared between a third-party seller and Shein, and whether consumer rights do not apply to the contract in cases where the third-party seller is not a trader.
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