eu investigates shein for deceptive practices and potential violations

The European Commission has launched an investigation into Shein, the fast-fashion giant, over concerns of deceptive practices. Authorities in Belgium, France, Ireland, and the Netherlands are participating in the probe. The investigation focuses on potential violations of EU consumer protection laws. Shein is accused of offering fake discounts and pressuring consumers with false purchase deadlines. The company also faces allegations of misleading product labels and sustainability claims. Furthermore, Shein is suspected of hiding customer service contact information. The investigation also found that Shein provided false information about product returns and refunds. The company allegedly failed to process refunds in a timely manner. Shein has until June 26th to respond to the findings and outline how it will address the identified issues. Failure to comply could result in a substantial fine from the EU. Shein's large presence in the EU, with 100 million monthly users, underscores the significance of the investigation. This development follows recent challenges for Shein, including increased prices due to changes in global trade rules and tariffs.