European Commission Accuses Shein of Manipulative Sales Tactics
Chinese retailer, Shein, could be hit with fines after an investigation by the European Commission suggested that the company has been using manipulative sales tactics.
Among the tactics flagged were fake discounts. The investigation suggests that Shein displays false original prices but also deploys countdown timers, which continuously reset. This means that the customer feels that they need to buy straight away.
The report by The Commission and the Consumer Protection Cooperation (CPC) Network also said that the company is using “inaccurate return policies, misleading sustainability claims, and confusing product labelling” writes Yahoo! News. The report has also flagged how difficult it is for customers to reach customer services if they have a problem.
The retail giant now has a month to respond to the accusations being levelled at it and outline its plans to fix the issues. If it fails to respond or to address these problems then the retail giant could face fines.
“All companies selling products in the EU must play by our rules,” said Michael McGrath, Commissioner for Justice and Consumer Protection. “Today's action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of where they are based.” He added: “EU consumer protection laws are not optional – they must be applied in all cases.”
Shein is already under scrutiny for possible breaches of the Digital Services Act, in relation to its recommendation algorithms. It has also been accused of selling items that don’t reach the bloc’s rules on health and safety.
