The European Commission and the CPC (Consumer Protection Cooperation) network have jointly notified a series of European consumer law to Shein. The e-commerce brand, designated “Very Large Online Platform” (VLOP) in April 2024 as part of Digital Services Act (DSA), is ordered to review its business practices.
A procedure coordinated between Brussels and four Member States
The action is carried out by the national consumer protection authorities of Belgium, France, Ireland and the Netherlands, under coordination of the Commission. It is part of a double framework, that of the DSA, in force for Valops since the summer of 2024, and that of the CPC regulation, which organizes the cross -border cooperation of the control authorities.
Shein has a month to respond to grievances and offer corrective commitments. In the absence of measures deemed satisfactory, administrative sanctions may be pronounced by the competent national authorities, which can go as far as fines proportional to the turnover achieved in the Member States concerned.
Practices in contradiction with European consumption law
The survey highlighted several problematic commercial practices on the platform. Some contravenes the requirements of the Directive on unfair commercial practices (UCPD), the Consumer Rights Directive (CRD), the Price Indication (PID) and the Electronic Trade Directive.
The identified shortcomings concern in particular:
- the presentation of fictitious discounts, not based on verifiable reference prices,
- Pressure sales techniques, including the display of false purchasing emergencies,
- incomplete or erroneous information on withdrawal rights, return and reimbursement procedures,
- Product labels suggesting specific advantages when they are legal obligations,
- Based environmental allegations likely to mislead consumers,
- The absence of clear contact channels for users wishing to ask questions or submit a complaint.
In addition, Shein must demonstrate that its classification, opinion and recommendations systems are not biased and that they meet the transparency requirements imposed on very large platforms. The distribution of contractual obligations between Shein and third -party sellers must also be clarified.
A test case for the implementation of Digital Services Act
Since its designation as a vop, Shein has been required to assess and limit the systemic risks induced by its activity, including in terms of consumer protection. The DSA notably requires an obligation of reinforced diligence in terms of content moderation, product safety and algorithmic transparency.
The procedure initiated within the framework of the CPC does not prejudge investigations opened by the Commission under the DSA, in particular on the presence of content or illegal products, on the transparency of the recommendation systems and on the measures implemented to protect public health and the well-being of users. Nor does it prevent the actions undertaken by the national authorities, such as that announced by the Italian competition authority.
A new step in the EU digital sovereignty policy
Executive vice-president Henna Virkkunen praised an “coordinated action with the consumer protection authorities” which reflects “the desire to build an effective response when the platforms do not respect our laws”. Commissioner Michael McGrath recalled that “companies that are aimed at European consumers must comply with our rules”, adding that “consumer law in the EU is not optional”.
This procedure highlights the convergence of European regulatory systems to supervise global platforms, based both on sectoral law (DSA) and on transversal consumer protection directives. It is also part of the strategy exposed in communication published by the Commission on February 5, 2025 on a “toolbox for a safe and sustainable e-commerce”.
Towards increased accountability of marketplaces
The requirement of conformity now extends to the economic model of market places, especially in their relationship with third -party sellers. The obligation to have a responsible economic operator within the EU, introduced by the regulation on general security of products (GPSR), imposes a form of territorialization of control.
