The Chinese Online Fashion Retailer Shein is Criticized for Improper Business Practices by German Consumer Advocates. The Federation of German Consumer Organisations (VZBV) has issued a warning to Shein, as the company has repeatedly violated European Union regulations. The complaint specifically targets manipulative elements on the platform that are in breach of the EU's Digital Services Act.

A critical point is the appearance of pop-up windows designed to entice customers with coupons as they leave the page. Such practices are considered manipulative and are not permitted under EU law. Shein must now seize the opportunity to issue a cease and desist declaration and amend the criticized practices. Ramona Pop, the chairperson of the VZBV, emphasized on Instagram that Shein misleads consumers and disregards consumer protection regulations.

In addition to manipulative practices, Shein has been criticized for seemingly arbitrary discount levels, missing information in reviews, and an incomplete legal notice. The accusation of greenwashing is also in the air, as Shein claims that picking up packages at parcel shops is environmentally friendly, although the products often travel long distances by plane.

The Shein Case is Part of a Wider Discussion About Chinese Online Marketplaces That Are Increasingly Coming Under the Scrutiny of European Regulatory Authorities. Similar Accusations Have Recently Been Made Against the Shopping App Temu, Against Which Legal Action May Be Taken Because No Cease and Desist Declaration Was Issued.

These developments show that the EU is seriously committed to enforcing compliance with its consumer protection laws and consistently holding platforms accountable that violate them.