Shein investigated in Europe for misleading discounts and lack of transparency in returns

Shein, the Chinese e-commerce giant, has been put under the spotlight of European authorities for its alleged lack of transparency and possible irregularities in its operations within the European Union. The Community institutions and the Consumer Protection Cooperation Network (CPC) have opened a Formal investigation to assess whether the company is actually complying with European legislation that protects consumers.

The EU's concern does not arise from nowhere: Shein, along with other platforms such as Temu or AliExpress, has been in the spotlight for months. because its strategy of low prices and constant promotions is raising doubts about the legitimacy of certain commercial practices. Specifically, authorities fear that European consumers are being misled through misleading discounts, Incomplete information on returns and lack of clarity in contact channels.

The keys to European research

The European Commission, in coordination with the CPC Network and national authorities in countries such as France, Belgium, the Netherlands and Ireland, has pointed out several aspects in which Shein could be violating EU consumer regulations:

• Promotion of unclear discountsShein is accused of showing discounts on previous prices that often reportedly did not exist, creating an artificial sense of urgency and opportunity in the purchase.
• Pressure tactics: The platform uses timers and insistent messages that suggest product shortages or limited timeframes, strategies designed to pressure shoppers to complete their order quickly.
• Information on returns and refunds: Numerous complaints point to the fact that details regarding return policies are not clearly explained, making it difficult for users to understand how to exercise their rights.
• Confusing labeling and dubious sustainability claimsExamples have been detected of products labeled with apparent special characteristics when they only meet the legal minimums, or environmental promises that are not supported by verifiable data.
• Difficulty contacting the companyMany users have noted the difficulties encountered in reporting incidents or complaints, which goes against the obligation to provide direct customer service channels.

In addition, the CPC Network has asked Shein for explanations regarding the presentation of reviews and ratings on its website, as well as how responsibilities are distributed between the company and third-party sellers.The goal is to prevent the information consumers receive from being incomplete or misleading.

One-month deadline and warning of economic sanctions

Shein has 30 days to convincingly respond to the questions raised. by the European Commission and the CPC Network. During this period, the company must demonstrate that it complies or will take the necessary measures to fully comply with EU regulations. If it fails to do so, the national authorities of the affected Member States will They could impose economic fines proportional to Shein's business volume in each country..

The company also faces other pressures, as Brussels continues to investigate Shein under the Digital Services Act (DSA).This is a much stricter regulation requiring large platforms to strengthen transparency, security, and the protection of internet users' rights. From April 2024, Shein has been classified as a Very Large Online Platform (VLOP), which implies new obligations such as the control of illegal content and greater responsibility for its digital and commercial ecosystem.

More controls and new rates for international shipments

The issue goes beyond even the strictly commercial. The European Commission is reviewing the system of tax exemptions for low-value parcels. (less than 150 euros), since the massive arrival of products from Asia is putting pressure on customs controls.

Among the options, It is planned to introduce a fee of two euros for each package, a measure that would especially affect companies such as Shein, Temu or AliExpress, which concentrate a very high volume of shipments.

At the same time, Other European countries, such as Italy, have also launched independent investigations into Shein., focusing on information transparency and compliance with local and European regulations.

Shein's response and the immediate future

The company's response has been cautious but collaborative. Shein assures that it is working hand in hand with the European authorities to demonstrate its willingness and commitment to EU legislation. and ensure that their users can enjoy a safe, reliable, and comprehensive experience. While they insist that customer satisfaction is their priority, they acknowledge that they will have to make adjustments to their procedures, especially if they want to maintain their position in the European market.

Compliance with regulations and possible sanctions will mark the way forward for the platform, which must demonstrate its willingness to adapt to the demands of the European market and strengthen its transparency and customer service mechanisms.

Alberto Navarro

I am a technology enthusiast who has turned his "geek" interests into a profession. I have spent more than 10 years of my life using cutting-edge technology and tinkering with all kinds of programs out of pure curiosity. Now I have specialized in computer technology and video games. This is because for more than 5 years I have been writing for various websites on technology and video games, creating articles that seek to give you the information you need in a language that is understandable to everyone.

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