EU Levies Penalties on SHEIN for Misleading Customer Discounts and False Information
Fast Fashion Giant SHEIN Under EU Investigation for Deceptive Practices
Published May 27, 2025, at 12:30 PM | Updated: 2 minutes
Convicted fast fashion brand SHEIN is facing scrutiny once more, this time from the European Union, in a move that comes as no surprise to critics. According to numerous reports, SHEIN is being probed for misleading customers with "fake discounts" and untruthful information. The company risks fines from the EU if it fails to make real changes within a month.
Criticized for its highly deceptive practices, including influencer marketing trips aimed at boosting its image, and an extensive history of ethical violations too vast to detail in a single article, SHEIN is a notoriously problematic company.
While the majority of past condemnation has originated from netizens and slow fashion activists, the brand is now under the intense gaze of a more significant power.
Now, with public criticism seemingly ineffective at curbing SHEIN's success, a stronger force is stepping in.
The European Commission has declared that SHEIN is currently breaking EU law. The enforcer found several purchases practices that contravene EU law, such as misleading statements, particularly regarding sustainability measures, and deceptive product labels.
EU Justice Commissioner Michael McGrath explained to the BBC, "It's now for Shein to respond, uphold the rules, and align its practices with EU consumer standards."
McGrath continued, "All companies reaching out to EU consumers must adhere to our rules. Today's action sends a clear message: we won't shy away from holding e-commerce platforms accountable, irrespective of their location."
A statement from the Consumer Protection Cooperation (CPC), an international network responsible for safeguarding consumers' rights in the EU, stated, "If Shein fails to address the concerns raised by the CPC Network, national authorities can enforce compliance. This includes the possibility of imposing penalties based on Shein's annual turnover in the EU Member States concerned."
The investigation comes shortly after the BBC published a harsh expose on SHEIN in January 2025, which revealed the arduous labor conditions endured by its Chinese factory workers. The employees, interviewed by the news outlet, reported working 75-hour weeks to boost their earnings, a problem directly attributed to their low wages.
It remains unknown whether SHEIN will act quickly to address the EU's demands. The duration of the brand's past evasion of accountability calls its readiness to embrace change into question. If SHEIN fails to comply, it could mark the end of one of the e-commerce industry's most influential players.
A month is but a short span of time to rectify years of wrongdoing.
[1] European Union Consumer Protection Enforcement Cooperation Network (CPC). (n.d.). Retrieved May 27, 2025, from https://ec.europa.eu/consumers/dgi/consumers/national_quicklinks/enforcement_cooperation-network/index_en.htm
[2] European Commission. (2021, April 28). Retrieved May 27, 2025, from https://ec.europa.eu/info/live-work-travel-eu/consumers_and_products/product-safety_and_quality/consumer-protection/consumer-rights_en
[3] European Commission. (2021, September 14). Retrieved May 27, 2025, from https://ec.europa.eu/info/publications/guidelines-enforcement-regulations-promoting-online-trade-english-2021_en
[4] European Commission. (2014, November 13). Retrieved May 27, 2025, from https://ec.europa.eu/info/live-work-travel-eu/consumers_and_products/product-safety_and_quality/safety-gateway/marketing_of_products_in_the_eu/unfair_business_practices_en
[5] European Parliament. (n.d.). Retrieved May 27, 2025, from https://www.europarl.europa.eu/RegData/etudes/STUD/2020/647209/EXPO_STU(2020)647209_EN.pdf
- The investigation by the European Union against SHEIN includes scrutinizing their deceptive practices not just in fashion-and-beauty products, but also in their business, investing, and social-media strategies, with a focus on misleading statements about sustainability measures and untruthful information.
- With SHEIN under investigation for breaking EU law, questions arise about the company's commitment to upholding lifestyle standards that advocate for ethical fashion, business practices, and consumer rights in the EU.
- As online businesses like SHEIN continue to gain influence, it becomes increasingly important for them to recognize the impact their practices have on entertainment, including the portrayal of their brand through celebrity endorsements and influencer marketing, and the responsibility they hold to maintain transparency and honesty in their operations.
