Consumer advocates are targeting Chinese online retailer Shein for what they see as unlawful business practices. A spokesperson for the Federal Association of Consumer Organizations (VZBV) said on Monday that Shein has violated the requirements of the European Union several times and has therefore been warned. The platform now has the option to issue a declaration of burden and make adjustments.
From a consumer advocate perspective, Shein violates the EU’s Digital Services Act, which bans the manipulative design of online platforms. The list of shortcomings includes several points: For example, the VZBV accuses Shein that as soon as a customer wants to leave the website, a pop-up window appears with the content “You could now receive vouchers! Are you sure you want to go?” appears.
Consumer protection rules are ignored
Shein is a fashion and sporting goods retailer founded by Chris Xu in 2008 and now based in Singapore. The fast fashion provider misleads consumers and ignores consumer protection rules, VZBV boss Ramona Pop said in a post on the Instagram platform. Shein initially left a written question about the allegations unanswered.
Random discounts, missing information
Shein was also warned about seemingly arbitrary discount levels, missing information in star ratings, and for an incomplete legal notice. Consumer advocates also accuse the retailer of greenwashing. The site states that parcel shop collection makes a positive contribution to the protection of the environment.
However, Shein and other platforms of this type are increasingly dependent on air transport. Packages have often traveled a long distance before they are delivered.
Temu also comes under criticism
Retail experts and associations had already called for stricter measures against Chinese discount marketplaces in recent months. Recently, the Temu shopping app in particular has been criticized by politicians and consumer interests. The VZBV accuses this platform of similar violations. They take advantage of consumers with seemingly arbitrary discounts, questionable reviews, and manipulative designs.
Temu denied the accusations and therefore did not issue a charge sheet. The consumer advocates are therefore investigating a lawsuit against the trading platform.
Source: Krone
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