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Home Business

Shein in Trouble Over Fake Discounts and Misleading Sales in EU

Doris Israel Ijeoma by Doris Israel Ijeoma
May 26, 2025
in Business, International, News, Politics, Security & Crime
0
Shein in Trouble Over Fake Discounts and Misleading Sales in EU

Shein, the Chinese fast-fashion giant, is under pressure from the European Union after an investigation found that the company may be breaking several consumer protection laws.

The EU has warned Shein that it has one month to respond and fix the issues, or face possible fines based on its sales in European countries.

The investigation, carried out by the EU’s consumer rights authorities, found that shoppers on Shein’s website are often faced with fake discounts and misleading information. Price cuts were shown as limited-time deals, even though they were not based on real past prices. In some cases, the platform used countdown timers to make buyers feel they had to act fast, a tactic known as pressure selling.

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Other concerns raised by the EU include unclear product labels, false claims about sustainability, and missing contact details for customer support. The bloc also told Shein to clean up how it displays product reviews, making sure ratings aren’t shown in a way that confuses or misleads shoppers.

Officials say that any company doing business with European consumers has to follow EU rules—no matter where it is based. The message is clear: platforms that rely on unfair sales tricks will be held accountable.

In response, Shein said it is working with both the EU and national consumer watchdogs to prove it is committed to following the law. The company says it wants to ensure a safe and reliable shopping experience for its customers in Europe.

But this isn’t the first time Shein has faced criticism. Earlier this year, a BBC investigation revealed that some of the company’s suppliers in China were forcing workers to do 75-hour weeks, violating local labor laws. Around the same time, Shein’s lawyer declined to answer UK lawmakers’ questions about where the company gets its cotton, prompting accusations of “wilful ignorance.”

Shein has since said it is investing heavily in improving working conditions and monitoring its supply chain more closely. The company claims to enforce a code of conduct and pay fair wages across its operations.

Now, with mounting pressure from Europe, Shein is being forced to not only defend its labor practices but also clean up how it markets and sells its products. What happens next could shape how the brand operates globally—and how it is viewed by millions of shoppers.

Tags: EUFake DiscountsMisleading SalesOverSheinTrouble
Doris Israel Ijeoma

Doris Israel Ijeoma

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