European consumer protection authorities are taking decisive action against the online retailer Shein following mounting complaints about substandard products. The European Commission has announced a collaborative effort among authorities in all 27 EU member states to address these issues. Shein, a fast fashion giant initially founded in China and now based in Singapore, has faced criticism for poor product quality and misleading return policies. The EU is advocating for stricter customs checks and a potential fee on parcels from third countries to cover rising enforcement costs.
Consumer advocacy groups have reported that over 90% of Shein's tested products fail to comply with EU regulations. This has prompted the Commission to demand more information from Shein regarding illegal products and its recommendation systems. Failure to comply could result in severe penalties, including fines up to 6% of the company's annual turnover.
Amid these developments, the Commission also proposes a new fee on e-commerce goods imported in small parcels, aiming to alleviate the strain on customs operations and ensure adherence to safety standards. The influx of low-cost packages from China and other countries is overwhelming European customs, making it challenging to enforce safety and environmental regulations.
The proposed changes are part of broader discussions on reforming EU customs rules, which may include reintroducing tariffs on low-value shipments previously exempt. This aligns with calls for a unified EU approach to online trade, addressing the competitive disadvantages faced by local businesses due to loopholes exploited by foreign companies.
In parallel, the US has imposed tariffs on Chinese imports, with President Trump intensifying measures against goods from China. Shein has expressed willingness to cooperate with EU and national authorities, emphasizing its commitment to improving consumer trust and safety in online shopping.
