Economic watchdogs accuse Shein of illegal trading practices
Economic inspection authorities from Belgium, France, Ireland and the Netherlands, along with the European Commission, have issued a warning to Chinese online fashion retailer Shein. They accuse the company of engaging in illegal commercial practices.
According to a press release from Belgium’s Federal Public Service Economy, under which the economic inspection operates, Shein is accused of a range of violations.
These include offering misleading promotions, pressuring consumers into purchases, providing incorrect information regarding withdrawal and refund rights, and disseminating false or deceptive claims about the sustainability of its products.
The Chinese retailer has been given one month to respond to the allegations. During this period, it may also submit proposals to amend its business practices. Should these proposals be deemed insufficient, national regulatory bodies may impose sanctions or other enforcement measures against the platform.
The potential penalties are significant: fines could be up to 6 per cent of Shein’s annual turnover, depending on the nature and severity of the infringement.
In parallel, the European Commission has launched a separate investigation into whether Shein is complying with the Digital Services Act, which came into force last year to combat illegal online content and ensure greater accountability for digital platforms.
© PHOTO YUICHI YAMAZAKI / AFP
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