EU Authorities Challenge Online Retailer SHEIN Over Consumer Law Breaches

European consumer protection authorities have formally notified Chinese fast-fashion giant SHEIN that several of its business practices violate EU consumer laws, following a coordinated investigation across multiple member states.

The Consumer Protection Cooperation (CPC) Network, led by authorities in Belgium, France, Ireland and the Netherlands under European Commission coordination, has identified widespread issues with how SHEIN operates its online marketplace that affect millions of European shoppers.

Key Violations Identified

The investigation found SHEIN engaged in several problematic practices, including offering fake discounts by showing price reductions not based on actual previous prices, and using pressure-selling tactics such as false purchase deadlines to rush consumers into buying decisions.

Consumer authorities also discovered the company provided incomplete and incorrect information about customers' legal rights to return goods and receive refunds, whilst failing to process returns and refunds properly. Additionally, SHEIN used misleading product labels suggesting special features that are actually required by law, and made false claims about the sustainability of its products.

The network found it difficult for consumers to contact SHEIN with questions or complaints, with contact details often hidden or hard to find.

Official Response

"All companies reaching out to EU consumers must play by our rules," said Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection. "Today's action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of where they are based."

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, welcomed the coordinated approach, stating it:

"demonstrates our resolve to deliver a coordinated and effective enforcement response when e-commerce platforms and e-retailers don't respect our laws."

What Happens Next

SHEIN now has one month to respond to the findings and propose how it will address the identified issues. If the company fails to adequately address these concerns, national authorities can impose enforcement measures, including fines based on SHEIN's annual turnover in the affected EU member states.

The action runs alongside a separate Digital Services Act inquiry by the European Commission, which is examining SHEIN's compliance with obligations as a Very Large Online Platform, including how it handles illegal content and protects consumer welfare.

Background Context

This enforcement action forms part of the European Commission's comprehensive approach to making e-commerce safer and more sustainable, as outlined in its February 2025 communication on e-commerce tools.

SHEIN was designated as a Very Large Online Platform in April 2024, subjecting it to the strictest regulatory obligations under EU law. The company has faced increasing scrutiny across Europe over its business practices and impact on consumer rights.

The investigation was supported by statistical information from European Consumer Centres, which have tracked frequent consumer complaints against the platform across member states.