Pressure on Shein

Customers on the slippery slope: cheap fashion retailer warned

Consumer advocates are targeting the Chinese online retailer Shein for what they consider to be unlawful business practices. Shein has repeatedly violated European Union regulations and has therefore been warned, a spokesperson for the Federation of German Consumer Organizations (VZBV) announced on Monday. The platform now has the opportunity to issue a cease-and-desist declaration and make adjustments.

In the view of the consumer advocates, Shein is in breach of the EU's Digital Services Act, which prohibits the manipulative design of online platforms. The list of deficiencies includes several points: For example, the VZBV criticizes Shein for the fact that as soon as a customer wants to leave the website, a pop-up window with the content "You could receive vouchers now! Are you sure you want to leave?" appears.

Consumer protection rules flouted
Shein is a fashion and sporting goods retailer that was founded in 2008 by Chris Xu and is now based in Singapore. The fast fashion retailer is misleading consumers and disregarding consumer protection rules, VZBV head Ramona Pop is quoted as saying in a post on the Instagram platform. Shein initially left a written inquiry about the allegations unanswered.

Arbitrary discounts, missing information
Shein was also warned for seemingly arbitrary discount amounts, missing information in star ratings and an incomplete imprint. The consumer advocates also accuse the retailer of greenwashing. The site claims that the parcel store collection makes a positive contribution to environmental protection.

However, Shein and other platforms of this kind are increasingly relying on air transportation. Parcels have often already traveled long distances by the time they are delivered.

Temu also under criticism
Retail experts and associations have already called for stricter action against Chinese low-cost marketplaces in recent months. Most recently, the shopping app Temu in particular has been criticized by politicians and consumer advocates. The VZBV accuses this platform of similar violations. It takes advantage of consumers with seemingly arbitrary discounts, questionable ratings and manipulative designs.

Temu refuted the allegations and did not issue a cease-and-desist declaration. The consumer protection organizations are therefore considering legal action against the trading platform.