Unfair practices?

EU launches investigation against online store Shein

(Bild: AP/Richard Drew)

The EU Commission has launched an investigation into the Chinese online marketplace Shein. The focus is on whether the platform is taking sufficient action against unfair contract terms and unfair business practices.

Breaches of European consumer protection are possible. Shein has been informed of the investigation, the Brussels authority announced on Wednesday. A spokeswoman for the company said that all efforts to "strengthen the trust and security of European consumers in online shopping" were welcomed.

In June 2024, the Brussels authority had already requested detailed information from Shein, for example on the action taken against illegal products and consumer manipulation. The Commission also wanted information on the extent to which the retailers could be traced.

Similar investigation against Temu
The EU Commission had already conducted a similar investigation into Temu. At that time, problematic practices such as false discount campaigns, fake reviews and a lack of and misleading information on consumers' legal rights were identified.

The online retailers are very popular due to their low prices. Politicians and consumer protection groups criticize the lack of quality, inadequate controls and unfair competitive conditions, among other things.

"Some products imported via Chinese online retailers do not meet European safety requirements. There are increasing reports of dangerous electronic waste and children's toys contaminated with harmful substances. However, the importer is usually liable for defective goods and, in the case of online orders, this is often the end consumer who orders the goods," said Elisabeth Götze, the Greens' economic spokesperson. 

Products that do not meet European safety requirements are sometimes imported via Chinese online retailers.

Elisabeth Götze, Wirtschaftssprecherin der Grünen

"Digitalization and growing e-commerce have fundamentally changed our markets and the world of trade. It is therefore all the more important not to lag behind this development in terms of regulation, but to act with foresight in order to protect all EU citizens - especially the smallest ones - from unsafe products," said Elisabeth Grossmann, SPÖ MEP.