The European Union has recently delivered a strong warning to the Chinese fast-fashion brand Shein, citing widespread breaches of EU consumer protection laws, specifically concerning fake discounts and pressure selling. This comes after an investigation by the EU's Consumer Protection Cooperation Network, involving national consumer authorities from Belgium, France, Ireland, and the Netherlands, alongside the European Commission.

• Fake Discounts - The EU concluded that Shein regularly engaged in displaying "fake discounts" by showing price reductions that did not reflect actual prior prices. This means the advertised "savings" were not real reductions from a previously established, higher price. This is seen as misleading consumers into believing they are getting a better deal than they actually are.

• Pressure Selling - The EU also identified that Shein employed pressure selling tactics, such as the use of "false purchase deadlines" to put consumers under pressure to buy quickly from the platform. This creates an artificial sense of scarcity or a time-limited opportunity that isn't genuine, pushing consumers to make impulsive decisions.

Other Identified Malpractices:

Beyond fake discounts and pressure selling, the EU's investigation also uncovered a range of other concerning practices:

• Misleading Information: Providing incomplete, incorrect, or misleading information about consumers' legal rights, including rights to return goods and receive refunds.

• Deceptive Product Labels: Using product labels that suggest a product offers something special or unique when, in fact, the relevant feature is already required by law.

• Misleading Sustainability Claims (Greenwashing): Offering false or deceptive information about the environmental benefits of its products, attempting to portray them as more sustainable than they are.

• Hidden Contact Details: Making it difficult for consumers to find and contact Shein for customer service or to address issues.

• Misleading Reviews and Ratings: The EU is also investigating whether product rankings, reviews, and ratings are presented to consumers in a misleading manner.

  
  

Outcome

Shein has been given one month to respond to the EU's findings and propose concrete commitments on how it will address the identified consumer law issues. This is alongside a separate inquiry under the Digital Services Act.

If Shein fails to address the concerns within the given timeframe, national authorities in the concerned EU member states (Belgium, France, Ireland, and the Netherlands) can take enforcement measures.

These enforcement measures could include significant fines, potentially based on Shein's annual turnover in the EU member states where the violations occurred. Some reports indicate fines could reach up to 6% of the company's global revenue, particularly under the Digital Services Act (DSA) if violations are systemic.

UK Impact

These findings also have significant implications for Shein's operations in the United Kingdom, even though the UK is no longer an EU member state.

The UK's consumer protection laws, while now separate from EU law, often share similar principles and objectives. Many UK regulations were initially based on or influenced by EU directives before Brexit.

Therefore, practices deemed illegal or misleading under EU consumer law, such as fake discounts and pressure selling, are highly likely to also violate UK consumer protection regulations.

• Misleading Marketing and Advertising: The UK's Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA) are highly active in policing misleading advertising and pricing practices. "Fake discounts" and "pressure selling" tactics would fall squarely within their remit. The CMA, in particular, has been very vocal about "online rip-offs" and has taken action against companies for similar deceptive practices.

• Greenwashing Concerns: The EU's findings regarding misleading sustainability claims ("greenwashing") are also a significant area of focus for UK regulators. The CMA has published guidance on environmental claims and has initiated investigations into companies making unsubstantiated green claims. Given Shein's extensive product range, any claims about its environmental impact would likely also be closely scrutinized in the UK.

• Worker Exploitation Allegations: While not directly part of the EU's recent consumer protection findings, Shein has faced substantial criticism in the UK regarding its labour practices. A BBC investigation in January 2025, for example, highlighted reports of excessive working hours for some Shein workers in China, in breach of Chinese labour laws. UK lawmakers have also raised concerns about transparency regarding Shein's cotton sourcing, amidst allegations of forced labour. These ethical concerns contribute to the overall scrutiny of Shein's operations in the UK.

  
  

While the recent EU warning doesn't automatically trigger direct legal action in the UK, it significantly increases the likelihood of UK authorities, such as the CMA or ASA, launching their own investigations or taking enforcement action against Shein.

If you have any concerns on your consumer facing terms and conditions, particularly in relation to any issues raised in this article, please get in touch with our commercial team at commercial@cgprofessional.co.uk – we are here to help.