ACM and European consumer authorities: SHEIN must adjust its website

The European consumer authorities, including the Netherlands Authority for Consumers and Markets (ACM), have established that Chinese online store SHEIN commits various violations of consumer protection law in the countries in which it is active. As a result, consumers are being misled, and are unable to make well-informed choices. In addition, it constitutes unfair competition for online stores that do comply with the rules.

SHEIN now has one month to indicate how it will adjust its website, so that it will comply with consumer protection law. This has been the provisional outcome of an investigation by several European consumer authorities, led by the Netherlands, Belgium, France, Germany, and Ireland.

Martijn Ridderbos, Member of the Board of ACM, adds: “SHEIN is active in many European countries. Since it violates consumer protection laws in all of those countries, it is imperative that we take a collective stand against SHEIN’s practices. Together, we have to make sure that these violations stop. That will benefit consumers as well as online suppliers that do comply with the rules.”

What practices must SHEIN adjust?

The European consumer authorities have pointed out to SHEIN the following violations that harm consumers:

• Fake discounts: presenting the reduced price as a discount, even though it is not a real discount;
• Pressuring consumers to make purchases using misleading countdown timers and scarcity claims, even though those special deals turn out not to be temporary or scarce;
• Lack of essential information about consumers’ statutory rights, such as the right to returns and the right to refunds;
• Fake selling points: presenting something as a special right, even though consumers always have that right;
• Misleading sustainability claims;
• Contact details are hidden, thereby making it harder for consumers to contact customer service.

SHEIN has one month to respond and to indicate how it will adjust its commercial practices. If it fails to comply, the national consumer authorities can take follow-up steps and impose sanctions, such as fines.

European collaboration

The European consumer authorities and the European Commission work together in the CPC network (Consumer Protection Coordination). The goal is to ensure that companies that are active in different European countries comply with the rules that protect consumers.

Since SHEIN has been designated as a Very Large Online Platform (VLOP), it also has to comply with the rules laid down in the European Digital Services Act (DSA). The European Commission assesses, among other aspects, whether SHEIN has taken sufficient measures to mitigate the risks concerning consumer protection, public health, and users’ wellbeing. In that context, the European Commission has sent several requests for information to SHEIN. The European Commission sees to it that the CPC action and DSA actions are mutually coordinated.