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Brussels has launched an investigation into Shein, the electronic commerce platform founded by China, amid the concerns that the company is violating the European consumer protection rules by selling illegal products.
An EU official said Wednesday that there is a “reasonable suspicion” of generalized violations of EU consumer protection laws by the company. Brussels is examining whether Shein exceeded the terms of the unfair contract, reductions in deceptive prices and unfair commercial practices. There is already a similar investigation in progress against Temu, the Chinese online shopping business.
It is the last problem for Shein, the Singapore -based fast fashion group that plans to publicly exchange their actions in London in the first half of 2025, pointing to an £ 50 billion assessment. The repression of Donald Trump about access without tariffs for small products could also abolish his business model.
The EU probe is part of a greater repression by the block in the avalanche of imports of China, in the midst of concerns about the increase in dangerous and falsified goods sent from Asia. Brussels Wednesday announced Plans to make electronic commerce platforms such as Temu, Shein and Amazon Marketplace responsible for dangerous or illegal products sold online. More than 90 percent of the plots of 4.6 billion lower value imported to the EU in 2024 come from China.
Shein said she shares the “objective of ensuring that European consumers can buy in line with tranquility” and that the company intends to “work closely” with the National Protection authorities and the European Commission to address any concern.
If it is found that Shein has violated the EU consumer protection rules, runs the risk of being fined by the national authorities throughout the European Union.
Shein is already being investigated by the commission under separate rules that monitor the market behavior of large online platforms. In that investigation, Shein runs the risk of fines of up to 6 percent of its worldwide annual turnover.
Shein, who sells garments from thousands of Chinese companies at ultra low prices worldwide, is still waiting for Chinese regulators to give their approval to be listed abroad.
Last summer, the group presented confidential documents before the United Kingdom financial regulator for a list and still undergoes due diligence. First he went to New York, but moved to London after he was rejected by American regulators.
Shein has also been in the sights of the United Kingdom parliamentarians recently and was accused of missing respect for a parliamentary committee after she refused to answer multiple questions about the integrity of her supply chain as part of a broader investigation.
Subsequently, the company provided written answers to some of the questions, but Liam Byrne, the president of the committee, wrote after stating that he had not clarified if he was sent to the products of Great Britain with Xinjiang cotton, an area linked to the accusations of the use of forced. labour.
Shein has faced accusations of bad work practices in his supply chain, but has repeatedly said that he has a “zero tolerance policy” regarding forced labor.
