EU warns Shein of fines in consumer protection probe

Shein could also be the target of EU regulatory demands under the EU’s Digital Services Act

Published Mon, May 26, 2025 · 11:40 PM

“Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience,” Shein said. PHOTO: REUTERS

[BRUSSELS] The European Union on Monday (May 26) urged fast-fashion retailer Shein to respect EU consumer protection laws and warned it could face fines if it failed to address the EU’s concerns.

Shein has grown rapidly by shipping inexpensive products directly to consumers. In February, the European Commission warned Shein and Temu, another Chinese online e-commerce platform, that they would be liable for the sale of unsafe and dangerous products sold on their sites.

A spokesperson for the company said in a statement that Shein is working with national consumers’ authorities and the EU Commission.

“Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience,” the statement also said.

The Consumer Protection Co-operation (CPC) network of national consumer authorities and the European Commission had now notified Shein of practices which infringed EU consumer law, the Commission said in a statement.

“Shein now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified consumer law issues. Depending on Shein’s reply, the CPC Network may enter a dialogue with the company,” it said.

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Given the ongoing instability of the situation, analysts say Shein has little choice but to reduce its reliance on China.

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Uncertainties remain around trade negotiations – and e-commerce retailers such as Shein.

Shein lowers prices to lure back US shoppers after tariff cut

The order published late on Monday offers some relief to big Chinese e-commerce players Shein and Temu and follows a weekend deal between Beijing and Washington to unwind for 90 days most of the tit-for-tat tariffs imposed on each other’s goods since early April.

US slashes ‘de minimis’ tariff on small China parcels to as low as 30%

The blockbuster IPO by Shein was initially planned for this year and was at one point eyeing a valuation of as much as £50 billion.

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Temu now plans to ditch its successful model centred around cheap Chinese imports and switch to a ��“local fulfilment” model.

Temu, Shein see US sales drop in week after tariff price hikes

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“If Shein fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance. This includes the possibility to impose fines based on Shein’s annual turnover in the EU Member States concerned,” the statement added.

Shein could also be the target of EU regulatory demands under the EU’s Digital Services Act.

In a further blow to Shein, the EU has proposed a 2 euro (S$2.92) handling fee per package for low-value e-commerce shipments. REUTERS

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