The European Commission has issued a formal ultimatum to Chinese e-commerce giant Shein, accusing the platform of systematically violating EU consumer protection laws. A joint investigation by regulators from Belgium, France, Ireland, and the Netherlands uncovered a series of manipulative and misleading practices that breach fair trading standards.
Investigators found that Shein frequently uses fake discounts, displaying inflated “original” prices that mislead users into thinking they are receiving significant savings. Additionally, the platform repeatedly deploys countdown timers that reset indefinitely to create artificial urgency, pressuring users to make immediate purchases.
The Commission also raised concerns over a lack of transparency. Shein’s return policy is said to be vague and difficult to understand. Claims regarding product sustainability appear unsupported by any third-party certification. Moreover, product labeling was found to be confusing, often leaving consumers unsure who the actual seller is and under what conditions the sale occurs.
Another critical issue cited is the lack of accessible and responsive customer service, making it difficult for consumers to ask questions or file complaints, a basic right protected under EU law.
Shein has been given one month to respond and submit a clear action plan addressing the identified violations. Failure to comply could result in significant fines and additional legal measures.
“Enough with the games,” said EU Commissioner for Justice and Consumer Protection, Michael McGrath. “Any company selling products in the EU must follow our rules, regardless of where they’re based or how big their online catalog is.”
Shein is not alone in facing regulatory pressure. In November 2024, rival Chinese platform Temu faced similar allegations. Investigators found that Temu used gamified promotions like “spin the wheel” discounts and allegedly published fake reviews to manipulate buying behavior.
Both Shein and Temu are also under scrutiny for potential breaches of the EU’s Digital Services Act (DSA), which governs online platforms’ recommendation algorithms, sales of unsafe goods, and user interface manipulation. If the violations continue, access to the EU market could be restricted.
Experts view these actions as a clear signal that the era of unregulated deep-discount platforms is ending. Europe is drawing a line: whether you’re a global brand or a rising online player, fair play is now non-negotiable.
