The European Commission issues a warning to "Shein" due to serious violations against consumers.

The European Commission has issued an official warning to the e-commerce company "Shein" accusing it of violating consumer protection laws in the European Union.

Investigations revealed a series of unethical business practices, including advertising fake discounts, using deceptive time-limited offers, spreading misleading claims about product sustainability, and concealing customer service contact methods.

The European Commission has given the company a deadline of one month to respond to these accusations, warning that failure to address these violations may result in hefty financial penalties based on its transactions in the violated European markets.

In response to the crisis, European Commissioner for Justice, Michael McGrath, stated that "It is time for Shein to comply with the rules and correct its practices to align with EU standards," emphasizing that "the message is clear: we will not hesitate to hold any e-commerce platform accountable, regardless of its geographic location."

The European official pointed out that the company faces the risk of damaging its reputation and suffering significant financial losses in one of its key markets, especially with the increasing awareness among European consumers about the importance of transparency and fair business practices.

In response to these accusations, "Shein" denied any deliberate violation, with a spokesperson stating: "Our priority is to ensure a safe, reliable, and enjoyable shopping experience for consumers in Europe," confirming the company's full cooperation with European consumer protection authorities to rectify any mistakes.

The investigation revealed the platform's manipulation of product prices by offering discounts on prices that were not actually applied, as well as exploiting a sense of false urgency to push consumers towards rushed purchasing decisions, in addition to the lack of transparency in displaying product reviews and failure to substantiate environmental sustainability claims of the products offered.