Shein Faces EU Consumer Complaint Over Alleged Deceptive Practices
Consumer watchdogs from 21 countries have taken a stand against the Chinese fast fashion giant Shein by filing a formal complaint with EU authorities. The European Consumer Organisation (BEUC) has put together a 29-page dossier that outlines a range of alleged dark practices used by Shein to manipulate customers into making purchases beyond their means.
Among the tactics cited are false countdown timers and low-stock notifications designed to create a false sense of urgency, as well as nagging practices that leverage fear of missing out (FOMO). Additionally, BEUC highlights the practice known as 'confirm shaming,' which makes customers feel guilty for not completing a purchase.
In response, Shein has refuted BEUC's claims, expressing disappointment over the watchdog's unwillingness to meet and discuss these issues. The company stated, "This unwillingness to engage is extremely disappointing particularly in light of Shein's growing popularity among European consumers."
As part of its complaint, BEUC is urging EU authorities to compel Shein to disclose the data behind its marketing claims, such as those related to product availability and promotional countdowns. BEUC argues that Shein's business practices amount to unfair commercial tactics that not only affect consumers but have broader negative implications for society, promoting practices that lead to excessive waste and environmental harm.
Specific concerns raised by BEUC include the proliferation of items that contribute to environmental degradation and the unhealthy obsession with acquiring clothing, often containing harmful chemicals. They emphasize that Shein's operations cybernetically encourage unnecessary consumer spending while simultaneously misguiding customers on their environmental responsibilities.
In another important avenue, BEUC's complaint insists that if Shein cannot substantiate its claims regarding stock levels and buyer urgency with the necessary data, it should be mandated to cease these misleading practices within the EU.
Furthermore, the group has pointed out potential safety risks associated with Shein’s products, raising fears that they may not comply with EU fabric and accessory safety regulations.
This complaint comes just four months after an investigation was launched by the European Commission and the Consumer Protection Cooperation Network (CPC) into Shein's compliance with European consumer laws. Last week, the EU and CPC informed Shein of several breaches in EU legislation, including fake discounts, aggressive selling tactics, and misleading product labeling that imply distinctive features which are, in fact, legally required.
European regulators have urged Shein to adhere to consumer protection laws, warning that failure to comply could result in fines. BEUC’s comprehensive submission complements the EU’s investigation by providing additional evidence of deceptive practices and extensive research from various consumer organizations across Europe.
Despite these claims, Shein contends that a collaborative dialogue with BEUC would better serve consumers. They have stated, "Consumers would be best served if BEUC agreed to meet with us, allow us to explain our operations and openly discuss any concerns." Shein has expressed frustration that their previous meeting requests have been repeatedly declined.
In defending its practices, Shein claimed it is already engaged in constructive dialogue with national consumer authorities and the European Commission, highlighting its commitment to respecting EU laws and regulations. The situation continues to unfold as authorities and consumer groups seek to address and correct the alleged harmful practices within the fast fashion retail landscape.
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