SHEIN has been misleading customers, EU demands answers

EU watchdogs have just put SHEIN on notice over fake discounts, greenwashing, and dodgy tactics.

SHEIN, the Chinese ultra-fast fashion giant that turned impulse buys into a global business model, is now facing serious heat from European regulators.

The investigation, spearheaded by consumer protection authorities from Belgium, France, Ireland, and the Netherlands, identified a number of practices on the company’s online marketplace platform that violate EU consumer law.

Fake discounts and greenwashing

The EU’s Consumer Protection Cooperation (CPC) Network has issued a warning to the Chinese fashion giant, which has a month to respond.

At the top of the violations list are fake discounts. Regulators say SHEIN has been promoting price reductions that aren't based on real previous prices, an issue that not only misleads consumers but violates the EU’s Price Indication Directive.

The company also came under fire for pressure-selling techniques. Urgent, time-sensitive prompts and "only a few left" alerts push customers to buy before thinking twice. The CPC considers these tactics manipulative, noting they could infringe on consumer decision-making rights protected under EU law.

The CPC points to incomplete or incorrect information about returns and refunds, making it difficult for consumers to know their legal rights. Meanwhile, contact details for customer support are reportedly hard to find, raising questions about accountability and transparency.

CPC is also investigating whether SHEIN’s sustainability claims hold up. According to the findings, the company may be misleading consumers about the environmental benefits of its products. Some “green” labels, authorities say, refer to features that are legally required and are not an added value.

The company is obliged to provide CPC with a plan for addressing the identified consumer law issues. If the company fails to address them, it is at risk of getting fined. The amount of the fine would be based on SHEIN's annual turnover in the EU member states concerned.

SHEIN under legal pressure

The EU’s move against SHEIN is part of a wider strategy to regulate e-commerce more rigorously. A recent Commission communication on a “Comprehensive Toolbox for Safe and Sustainable E-commerce” outlined the authorities' plan to clamp down on misleading and unsafe online sales practices.

SHEIN was designated a Very Large Online Platform (VLOP) under the Digital Services Act (DSA) in April 2024.

That designation means it must meet heightened obligations, including stronger safeguards against systemic risks such as misinformation, illegal products, and user manipulation.

SHEIN’s legal troubles in Europe don’t end here. The Commission’s ongoing DSA inquiry on SHEIN concerns the presence of illegal content and goods on SHEIN's marketplace, the transparency of its algorithms, and measures to mitigate risks relating to consumer protection, public health, and users' well-being.

SHEIN’s no stranger to controversy. The brand has long been criticized for the low quality of its products, all while facing allegations of human rights abuses in its supply chain and contributing to the environmental chaos fueled by the fast fashion industry at large.