A spokesman for the Federal Association of Consumer Organizations (VZBV) said on Monday that Shein violated European Union requirements several times and was therefore warned. The platform now has the opportunity to issue a cease and desist declaration and make adjustments.
From the perspective of consumer advocates, Shein violates the EU’s Digital Services Act, which prohibits the manipulative design of online platforms. The list of deficiencies includes several points: The VZBV, for example, blames Shein for the fact that as soon as a customer wants to leave the website, a pop-up window appears with the content “You could now receive vouchers! Are you sure you want to leave ?” appears.
Shein is a fashion and sporting goods retailer founded by Chris Xu in 2008 and now based in Singapore. The fast fashion provider is misleading consumers and ignoring consumer protection rules, VZBV boss Ramona Pop is quoted as saying in a post on the Instagram platform. Shein initially left a written question about the allegations unanswered.
Arbitrary discounts, missing information
Shein was also warned for seemingly arbitrary discount levels, missing information in star ratings and for an incomplete legal notice. The consumer advocates also accuse the retailer of greenwashing. The site states that parcel shop collection makes a positive contribution to environmental protection. However, Shein and other platforms of this type are increasingly relying on air transport. Parcels often have already traveled long distances before delivery.
Retail experts and associations had already called for stricter action against Chinese low-cost marketplaces in recent months. Recently, the Temu shopping app in particular has been criticized by politicians and consumer advocates. The VZBV accuses this platform of similar violations. They take advantage of consumers with seemingly arbitrary discounts, questionable reviews and manipulative designs. Temu contradicted the allegations and therefore did not issue a cease and desist declaration. The consumer advocates are therefore examining a lawsuit against the trading platform.
