The European Union is taking decisive action against the Chinese online retailers Shein and Temu due to suspected violations of consumer protection laws. Shein, which has gained popularity for its affordable but often low-quality fashion items, faces criticism for misleading return policies and questionable product quality. The European Commission, under the oversight of national consumer protection agencies, is investigating these claims.
In 2022, a staggering 4.6 billion low-value parcels, predominantly from China, entered the EU, highlighting the need for stricter controls. This influx has put significant strain on customs authorities, prompting the EU to propose the removal of duty exemptions on imports valued under €150. Additionally, a handling fee for packages is being considered to offset the costs associated with increased customs checks.
The German economy supports these measures, emphasizing the necessity for equal competition rules across the European market. As part of broader efforts, the EU aims to prevent the sale of unsafe or non-compliant products by enhancing digital tools and enforcement mechanisms for online marketplaces.
The investigation into Shein mirrors similar actions taken against Temu, where practices such as false discounts and fake reviews were uncovered. These initiatives are part of a larger EU strategy to ensure consumer safety and fair competition, while addressing environmental and labor concerns linked to the fast-fashion industry.
Despite the challenges, Shein and Temu have expressed willingness to cooperate with the EU and national authorities. As the EU Parliament and member states deliberate on these proposals, the outcome could reshape the landscape for e-commerce giants operating within the region.
