From Yahoo Finance: 2025-05-27 05:15:00

Online retailer Shein faces fines if it doesn’t address EU consumer law issues identified by the European Commission and national consumer authorities. Violations include false discounts, pressure selling, misleading information, deceptive labels, and more. Shein has one month to respond and align practices with EU laws to avoid potential penalties.

The European Commission and CPC Network are investigating Shein’s practices to ensure compliance with EU consumer laws. Authorities from Belgium, France, Ireland, and the Netherlands are involved in the coordinated action. Shein must provide additional information to address concerns, including misleading presentation of rankings, reviews, and ratings to consumers.

EC executive vice-president Henna Virkkunen emphasizes the importance of enforcing consumer protection laws in e-commerce. Shein has a month to respond to the CPC Network’s findings and propose solutions. Failure to comply may result in fines based on Shein’s EU annual turnover. EC commissioner Michael McGrath stresses the necessity of Shein adhering to EU consumer standards.

In April 2025, Shein was designated as a Very Large Online Platform (VLOP) under the Digital Services Act (DSA) in EU law. This development underscores the importance of compliance with EU regulations. Retail Insight Network originally reported on Shein’s potential fines for EU consumer law violations.

Read more: Shein to face fines if it fails to fix EU consumer law issues