The European Union has issued a formal warning to Shein, urging the online retailer to comply with EU consumer protection laws or face potential fines. The warning follows an investigation by the Consumer Protection Co-operation (CPC) network and the European Commission, which identified practices on Shein's platform that breach EU regulations.
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Shein has been given one month to respond to the findings and propose measures to address the concerns. If the company fails to take adequate action, national authorities across the bloc may enforce penalties, including fines linked to Shein's annual turnover in the affected EU member states.
A spokesperson for Shein confirmed the company is cooperating with EU and national authorities, stating that their 'priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience'.
The move forms part of a broader EU crackdown on online platforms amid rising concerns over unsafe and low-quality goods. Earlier this year, both Shein and rival platform Temu were warned over the sale of potentially hazardous products.
The Commission has also flagged Shein as a possible target under the new Digital Services Act, which imposes stricter obligations on large online platforms to manage harmful content and ensure user safety.
Adding further regulatory pressure, the EU has proposed a €2 handling fee for each low-value e-commerce package shipped into the bloc—an additional cost that could impact Shein's business model, which relies heavily on low-cost, high-volume deliveries from outside Europe.
As scrutiny of fast-fashion firms intensifies, the EU's latest action signals a shift towards tougher oversight and enforcement aimed at protecting consumer rights in the digital marketplace.
Source: www.reuters.com