EU Cracks Down on Fast-Fashion Giant Shein Over Consumer Protections

The European Union has issued a stern warning to fast-fashion retailer Shein, urging the company to adhere to EU consumer protection laws or face significant fines.

Shein, known for its rapid delivery of affordable products, was previously cautioned by the European Commission alongside another Chinese platform, Temu, regarding the sale of unsafe products. The Consumer Protection Cooperation network has now formally notified Shein of its consumer law violations. The company has been given one month to respond and propose solutions to address these issues.

If Shein fails to meet the EU's demands, it may face enforcement actions that could include hefty fines based on its annual revenue within the EU. Additionally, Shein is under scrutiny for potential regulatory demands under the EU's Digital Services Act. Furthermore, a new proposal could introduce a 2-euro handling fee for low-value e-commerce shipments, adding pressure to the retailer.

(With inputs from agencies.)