Shein Faces EU Investigation Over Consumer Protection Concerns
The European Union is intensifying scrutiny of Shein, a prominent Chinese e-commerce platform, concerning compliance with consumer protection laws. This action, led by the Consumer Protection Cooperation Network (CPCN), is based on several directives, including the Unfair Commercial Practices Directive and the Consumer Rights Directive. The European Commission’s announcement coincides with a broader strategy to address risks from a surge in low-value e-commerce, highlighting concerns over the safety and compliance of imported goods, such as toys and electrical appliances.
EU lawmakers have expressed alarm over the influx of low-cost imports that often fail to meet safety standards, posing health risks to consumers. They report that up to 96% of products tested from platforms like Shein do not comply with EU safety standards. The rise in such imports has doubled since 2023, presenting significant challenges for consumer protection and environmental sustainability.
In response, the EU has proposed a “Comprehensive EU Toolbox for Safe and Sustainable E-commerce,” which includes customs reforms and enhanced enforcement of existing regulations. The plan emphasizes the need for coordinated efforts among Member States and calls for new legislative measures to ensure fair competition and consumer safety in the digital marketplace.
Shein has expressed willingness to collaborate with EU authorities to address these concerns, emphasizing its commitment to consumer safety and a fair competitive environment. The company supports efforts to enhance trust in online shopping and aims to align with EU regulatory standards through its compliance teams.
