Consumer Associations File Complaint Against Shein in EU for Unfair Practices
Twenty European consumer associations allege misleading practices, prompting further scrutiny of the fast fashion giant.
A coalition of approximately twenty consumer associations from across Europe has lodged a complaint against the fast fashion retailer Shein with the European Commission, citing what they describe as unfair practices.
The complaint, submitted on Thursday, includes accusations of misleading advertising, such as endless product displays and claims of low stock without sufficient proof.
This action follows a prior investigation by the European Union which raised concerns in May regarding the company’s practices, including allegations of deceptive discounts and misleading information related to product sustainability.
Shein was subsequently warned of potential fines if these issues were not addressed.
The complaint, spearheaded by the European Consumer Organisation (BEUC) and supported by its member associations, aims to provide additional evidence concerning the alleged unfair practices.
Among the associations involved is the French consumer rights organization CLCV, which has also reported similar concerns to the French Directorate-General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF).
Consumer associations are raising alarms regarding marketing techniques that they claim encourage consumers to purchase more items than they originally intended, thus exacerbating the environmental and societal issues linked to the fast fashion industry.
In parallel, Shein is also contending with a legislative proposal that aims to regulate its operational practices, which is currently under examination in the French Senate.
The company has expressed its belief that European consumers would be better served if the BEUC agreed to meet with them, as requested by Shein.
Originating from China and now based in Singapore, Shein is facing numerous legal challenges both in France and throughout Europe.
The company stated its intention to collaborate constructively with national consumer protection authorities and the European Commission to demonstrate its commitment to adhering to EU laws and regulations.
In its correspondence, Shein criticized the BEUC's refusal to engage in dialogue, expressing disappointment and highlighting its growing popularity among European consumers who value the competitive pricing offered by the platform.