The European Commission announced on Wednesday an investigation into the Chinese e-commerce marketplace Shein for allegedly violating EU consumer protection rules.
There is reasonable suspicion of widespread violation of the EU’s laws on unfair contract terms, price indication and unfair commercial practices, an EU official told reporters in Brussels.
The probe would be carried out by the bloc’s national consumer protection authorities under the supervision of the commission, the commission said.
Shein was informed of the investigation, the commission added.
Already last June the commission had requested detailed information from Shein on its approach to tackling illegal products and consumer manipulation and the traceability of traders.
Similar proceedings are ongoing against Chinese marketplace Temu over allegations of false discount campaigns, fake reviews and missing and misleading information on consumers’ legal rights.
A spokeswoman for Shein said the company’s regulator and compliance teams will engage with partners at the European and national level.
“We welcome efforts that enhance trust and safety for European consumers when shopping online,’’ the spokeswoman said.
Shein and Temu grew quickly in size in recent years with goods mostly being shipped directly from China.
The online retailers are very popular due to their low prices, however the platforms are controversial.
Trade representatives, politicians and consumer advocates criticise the quality of the products, the lack of controls, unfair competition and the environmental impact of the shipments.
The portals reject the accusations.
The success of the platforms also contributes to a steep increase in low-value parcels arriving in the EU.
In 2024, around 4.6 billion parcels with a value not exceeding 150 euros (156 dollars) entered the EU market, corresponding to 12 million parcels per day, according to commission figures.
“This is twice as many as in 2023 and three times as many as in 2022,’’ the commission said. (dpa/NAN)
