The EU's consumer protection agency has found that Shein employs questionable marketing practices, including misleading price reductions that do not correspond to actual previous prices. The investigation also uncovered the use of deceptive product labels, false sustainability claims, and incomplete information regarding customers' return rights. Shein, classified as a 'very large online platform' under the Digital Services Act, could incur fines up to 6% of its global revenue unless it aligns its practices with EU consumer protection laws.
The EU warned Shein against practices like offering 'fake discounts' and manipulating pressure tactics, advocating for compliance or risk facing significant penalties.
The investigation highlighted issues such as deceptive product labels and misleading sustainability claims, which misinform customers about their rights.
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