Chinese fast fashion e-commerce brand Shein has been required to respond within one month to the EU Commission regarding the issues identified in its marketing practices. Reports indicate that the EU Commission has accused Shein of employing a range of non-compliant marketing tactics, including false discounts and misleading purchase deadlines to push consumers to make quick orders. Furthermore, Shein has been found lacking appropriate and accurate information regarding consumers' rights for returns and refunds, alongside allegations of using false claims to promote product advantages.

These issues were revealed in a joint investigation conducted in February this year by the EU Commission alongside consumer regulatory agencies from Belgium, France, Ireland, and the Netherlands. Michael McGrath, an EU consumer protection official, stated, “EU consumer protection laws are not optional, they must apply in all circumstances.” He indicated that Shein must take action immediately to conform to EU standards.

Shein has responded by stating it is cooperating with regulators to resolve these matters. As a Chinese fast fashion company, Shein also faces numerous controversies, such as issues surrounding “Xinjiang cotton,” style plagiarism, trademark infringements, and circumventing EU tariffs by shipping a large volume of small packages. The EU plans to charge a fixed fee of 2 euros per item for small packages, which refers to parcels valued under 150 euros, impacting e-commerce platforms like Temu and Shein. According to the EU Commission, about 4.6 billion small packages are projected to enter the EU market in 2024, equating to approximately 12 million per day, with over 90% originating from China. Currently, these small packages can enter the EU duty-free.

Last week, the EU announced plans to impose a fixed fee of 2 euros per small package entering the EU, affecting popular e-commerce platforms like Temu and Shein. Previously, the US government had scrapped the De minimis policy, which allowed duty-free entry for packages under 800 dollars.

The rise of platforms like Shein and Temu, which focus on low-cost goods, has raised concerns among Western regulators. In addition to exploiting customs loopholes, many products sold on these platforms fail to meet safety and environmental standards. Recently, the EU has strengthened regulations, requesting Shein to provide internal documents detailing potential illegal content and risks associated with products on its platform, as well as specific measures it has implemented to mitigate consumer protection, public health, and user welfare risks.

To avoid falling into consumer traps, it is crucial for consumers to be aware of marketers' strategies in the digital age. German independent testing organization Stiftung Warentest published an article last year detailing how some websites and apps try to manipulate consumers, such as creating emotional pressure, providing confusing information, offering cash incentives, and generating time pressure to prompt quick orders. Although the article was not specifically targeting Shein, it offers valuable insights for consumers. Editors advised consumers to avoid time pressure and to make choices carefully after understanding the situation, and to contact sellers and consumer associations if they feel deceived.