Shein encourages consumers to exceed normal consumption levels, according to a report
Shein Faces Allegations of Deceptive Practices by EU Consumer Group
The European Union (EU) consumer organisation, BEUC, has filed a complaint against fast fashion retailer Shein, accusing the company of using deceptive techniques to trigger unwilling spending and economic losses for consumers. The complaint also alleges that Shein circulates unsafe clothing across Europe and contributes to environmental and societal problems caused by fast fashion.
In a statement, BEUC Director General AgustiΜn Reyna claimed that the fast fashion model is fueled by manipulative practices. The complaint, based on research that included studies conducted by BEUC members, suggests that some of these practices are an industry-wide problem and not exclusive to Shein. The group has asked EU authorities to investigate other traders using similar unfair practices.
The complaint does not specify any new practices or issues related to Shein's use of technology, consumer behavior, corporate/finance, or compliance. However, it does request Shein to provide evidence that its customer reviews and "low stock" notices are genuine, and if they're not, to stop using them. The group also requested Shein to stop using deceptive techniques such as toying with consumers' emotions and using an "infinite scroll" tool.
Shein's spokesperson responded by stating that the company is already working constructively with authorities to demonstrate compliance with the law. The spokesperson added that European consumers would be best served if BEUC agreed to meet with Shein, allowing them to explain their operations, and discuss openly and transparently any concerns they have. The spokesperson expressed disappointment over BEUC's unwillingness to engage, citing the company's growing popularity among European consumers.
The EU Commission has previously investigated both Shein and fast fashion competitor Temu regarding compliance with the EU's Digital Services Act. The investigation of Temu resulted in two separate probes. Earlier this year, Shein provided the Commission with internal documents that detailed risks linked to the potential sale of illegal products on its platform.
If Shein doesn't take corrective action, the group is asking EU authorities to intervene in order to prevent the risk of serious harm to customers. The complaint joins other investigations the European Commission is conducting into Shein, including allegations that the fast fashion company uses fake discounts and pressures consumers.
The search results did not provide information on other companies identified by BEUC as using manipulative techniques in customer retention. It is unclear at this time whether other fast fashion retailers will face similar allegations.
The dispute between Shein and BEUC highlights the growing concern over the ethical and sustainable practices of fast fashion companies in Europe. As consumers become more aware of the environmental and social impact of their purchases, the pressure on retailers to adopt more responsible practices is likely to increase. The outcome of the EU Commission's investigation into Shein and other fast fashion retailers will be closely watched by consumers and industry observers alike.
