Shein hit with consumer protection action in EU as bloc unboxes strategy to tackle low-cost ecommerce risks

Chinese ecommerce and rapid fashion giant Shain are facing a new investigation in the European Union after the block is launched by the Block Customer Security Cooperation Network (CPCN).

This step is being directed with the EU’s unfair commercial practice guidelines, consumer rights guidelines, terms of unfair agreements, guidelines for price guidelines and e-commerce directive-though it is not clear what specific concerns about Shin’s marketplace are clear.

The European Commission announced the move on Wednesday because in recent years, the low -cost ecommerce activity has presented a package of goals and renovations to deal with a number of risks attached to the acute enhancement of activities.

Announced during a press conference Communication EU lawmakers warned that a “tsunami” of cheap imports is flooding the market with a product that fails to meet the quality of the block – creating health and security risks for European customers.

Insecured products such as small isolated parts that can create a risk of toys, with insufficient insulation, and chemicals of clothing were mentioned as examples of danger associated with cheap imports.

“Recent evidence and test results conducted by the national authority and consumer agencies leave in our suspicion – the evidence here is clear – up to 96% of the products tested and sold on these platforms will not fully adhere to our rules and our protection standards,” the Law Enforcement Commissioner. ” Michael McGrath says.

The I say About 4.6 billion “low-value” (which means not exceeding $ 150 with a price) has entered the market-which is equivalent to 12 million parcels per day-which is twice as much as 2023 and 3x 2022.

Ultra is also increasing environmental and competition anxiety in the EU in the EU.

Lawmakers said that the bundle of involved issues requires a multi-spiritual approach that both want to use a full range of existing laws in the relevant regions — such as EU Digital Services and Digital Markets Act, its general product protection control, and Ecodizine – In other cases such as legal reforms and additional rules, such as pressing with custom tariffs.

Secure and durable ecommerce

The Commission’s communication determines what is being scattered as “a wide EU toolbox for safe and sustainable e-commerce”, as well as consumer protection and competition and competition in addition to large ticket problems such as custom reforms and imported products for imported products. Applied to take action.

(In the case of consumer protection, it is noteworthy that when the Commission played an integrated role in CPCN, the actual enforcement of the laws in the region came to the state-level authority-so there are many central steps that the EU itself can do here. So it is high and public calls. .)

This communication calls for adoption of the first action plan regarding ecodizine for sustainable product control, to help you respond to the environmental challenges grown by the emergence of ecommerce, as well as to help the EU co-legislators to help backwards. The proposed amendment of the waste framework directive – which concentrates on tackling textile waste.

The Commission also followed the plan to present a “Digital Fairness Act” on Wednesday – which McGrath said that “strengthen consumer protection in digital cases in a target manner”.

EU has already taken some steps in this case – Sheen and another low -cost ecommerce platform sent to Temu’s request for information Last JuneUnder the Digital Services Act (DSA), the two platforms follow their designation as a very large online platform (VLOP) and are centrally subject to EU supervision. (When like Shin, Temu Consumer Protection Aim to anxiety: Back in May Consumer groups have filed multiple integrated allegations against DSA violations.)

Because March 2024 The Commission also had an open DSA investigation about the commission’s online marketplace, alliance express, another importer of cheap products on the block. And since the start of the online governance framework, EU has identified EU Ecommerce as one of its most enforceable priorities – which EvP Hena Verkunen reiterated today.

“We will also prioritize the commission supervisory and enforcement of the rules applicable to online marketplaces under the Digital Services Act, with the obligation to determine the risk of the consumer and the action they have taken to reduce these risks,” Vircunen said. During the press briefing.

Customs reform

In the case of the EU Customs Union reform, there was a proposal on the table since 2021 – which will currently remove the tariff relief provided in the packages with the content of the price below $ 5.

During today’s briefing, the Commerce and Economic Protection Commissioner Maro šefčovič said the proposed requirement for the “critical system” required to take more responsibility as an importer of “critical system” related to “critical system” is needed.

“The current practice of considering citizens as an importer for tariffs is ineffective to ensure their protection,” he warned, also emphasized the need to “increase control capacity”.

He added, “It is important to finalize our customs union reform in response to the rise of low -cost ecommerce imports and probably to finalize it in 2026,” he added.

The Commission is advising the member states to get behind the “potential supplement”, such as a discriminatory handling fee for the direct supply to the customers. Other activities floating in this region include introducing a “customs priority control zone” dedicated to ecommerce products; And to introduce integrated verbs that target the product protection sweeps such as the sweeping sweeps quickly detect and remove.

Efovio acknowledges the contact that “calls for action”, asking for EU MLAs and other stakeholders to “work together … every citizen requests confirming that it benefits from a trusted online marketplace.”

In response to the Commission’s proposal, BulkEuropean consumer agency, pressed on “emergency and ambitious moves”. “Test Lots of products sold online such as toys and textiles are unsafe. If the EU is serious about protecting customers and hitting the streets of decorbonization, it must be ensured that everyone should play by the same rule, “DG, Agustan Rayana said in a statement.

“Consumer groups introduce the European Commission and the National Authority to fully support the enforcement activities, as we have launched against one of the running Before And one has announced against Shin today, “he added.

Shin was contacted to comment on the CPCN action. Spokesperson Zakub Hera Adamovis emailed a statement that the company wrote: “We have not shared the CPC network goals to ensure that European customers can buy online in peace and we wish to work closely with the CPC Network and the Commission to solve any concern. ”

In a wide comment by responding to the Commission’s proposed toolbox for a safe and sustainable ecommerce, Shein writes that “It enhances confidence and protection for European customers while shopping online” and also supports “a competitive play field”.

“Shin’s on-demand model is to reduce inefficiency and reduce waste in material and selling inventory, allowing us to provide great style and quality at our accessible price,” it also says: “Our regulators and consent teams across the EU will involve us in EU and national Test these recommendations to study these recommendations and take our role to strengthen our industry to enhance online shopping experiences. ”