Clients deceived – Shein is facing EU sanctions

manager24.pl 1 month ago

Asian commercial portal Shein must improve its consumer policy due to infringements of EU legislation. As the European Commission and the network of European consumer authorities (CPC network) have stated, clothing seller misleads customers by providing unclear or missing information. Shein now needs to make proposals for improvements within a period to avoid possible penalties.

Fashion group, founded in China, and presently based in Singapore, is both a producer, retailer and a place of bargaining. Shein offers low prices, but is criticized, among others, for product quality and unfair competition.

Invalid discounts and acquisition dates

The authorities supply examples of respective practices: Shein, for example, offers discounts that do not reflect the first price of the products. In addition, there is force on consumers by setting artificial acquisition times. Shein besides made false statements on the sustainability of its products.

No easy accessible contacts in the event of problems or conflicts. The authorities besides criticised the management of the exchange law. Shein does not supply adequate information about this and does not process returns in accordance with EU legislation.

Shein: ‘Constructive’ cooperation with authorities

In a statement, Shein did not address the individual allegations, but mentioned "constructive" cooperation with the EU authorities. The company wants to show its commitment to compliance with EU law. "We will proceed to participate in this process to resolve any doubts," said the spokesperson for the German Press Agency.

EU authorities are so expanding their activities against Asian shipping companies. In November, the European Commission and the CPC network called on the Chinese online marketplace for Temu to make improvements in relation to akin infringements. An investigation against Shein was besides initiated that same month.

A flat-rate fee of up to EUR 2 per consignment from 3rd countries of the EU is besides planned. According to the European Commission document, this could include, inter alia, "increased monitoring costs". Last year, around 12 million packages were arriving in the EU all day, much more than in the erstwhile 2 years.
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