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European Commission Initiates Investigation into Shein While Focusing on Chinese E-Commerce Regulations
The Commission launches an investigation into consumer protection concerning Shein and presents a set of tools to ensure Chinese online retailers comply with EU standards.
On Wednesday, the European Commission revealed the initiation of a consumer protection investigation into the Chinese clothing retailer Shein, collaborating with the Consumer Protection Cooperation Network, which consists of consumer protection authorities from all EU member states.
This investigation is prompted by indications of possible violations of EU consumer protection laws and unfair practices.
Alongside the investigation, the Commission introduced a comprehensive toolbox designed to tackle the challenges presented by Chinese online marketplaces that do not comply with EU standards for quality, environmental sustainability, and fair trade practices.
The toolbox details existing regulations that are applicable from the time consumers access a website until a purchase is made, and it suggests new initiatives, including reforms in customs procedures.
Among the suggested actions is the implementation of the Customs Union Reform Package, which aims to eliminate duty exemptions for low-value parcels and establish a decentralized EU Customs Authority to enhance coordination among national customs efforts.
The toolbox also advocates for the use of artificial intelligence tools for conducting product safety audits, as well as mystery shopping and testing programs to identify and recall unsafe products, in accordance with the recent General Product Safety Regulations.
Furthermore, the communication urges measures under the Ecodesign for Sustainable Products Regulation and revisions to the Waste Framework Directive to mitigate the environmental effects of low-value product imports.
The Commission highlighted the importance of enforcing current Digital Services Act provisions related to addictive design, dark patterns, and misleading discounts, as well as the regulations in the Digital Markets Act that tackle unfair commercial practices, while urging strengthened cooperation among EU member states' agencies.
In response, Shein expressed its willingness to cooperate with the investigation and affirmed its dedication to enhancing trust and safety for European consumers.
The Commission plans to evaluate the effectiveness of the new measures within a year and will release a report detailing the enforcement actions undertaken.
A concurrent investigation into the Chinese retailer Temu, initiated in November, is still ongoing, and the EU intends to propose a Digital Fairness Act to address additional gaps in consumer protection regulations.
This investigation is prompted by indications of possible violations of EU consumer protection laws and unfair practices.
Alongside the investigation, the Commission introduced a comprehensive toolbox designed to tackle the challenges presented by Chinese online marketplaces that do not comply with EU standards for quality, environmental sustainability, and fair trade practices.
The toolbox details existing regulations that are applicable from the time consumers access a website until a purchase is made, and it suggests new initiatives, including reforms in customs procedures.
Among the suggested actions is the implementation of the Customs Union Reform Package, which aims to eliminate duty exemptions for low-value parcels and establish a decentralized EU Customs Authority to enhance coordination among national customs efforts.
The toolbox also advocates for the use of artificial intelligence tools for conducting product safety audits, as well as mystery shopping and testing programs to identify and recall unsafe products, in accordance with the recent General Product Safety Regulations.
Furthermore, the communication urges measures under the Ecodesign for Sustainable Products Regulation and revisions to the Waste Framework Directive to mitigate the environmental effects of low-value product imports.
The Commission highlighted the importance of enforcing current Digital Services Act provisions related to addictive design, dark patterns, and misleading discounts, as well as the regulations in the Digital Markets Act that tackle unfair commercial practices, while urging strengthened cooperation among EU member states' agencies.
In response, Shein expressed its willingness to cooperate with the investigation and affirmed its dedication to enhancing trust and safety for European consumers.
The Commission plans to evaluate the effectiveness of the new measures within a year and will release a report detailing the enforcement actions undertaken.
A concurrent investigation into the Chinese retailer Temu, initiated in November, is still ongoing, and the EU intends to propose a Digital Fairness Act to address additional gaps in consumer protection regulations.
