European consumer associations file complaint against Shein for shady sales practices

European consumer organizations have filed a complaint to the regulators regarding alleged manipulative techniques committed by the online web store Shein. The company is accused of using tricks to seduce customers into buying more products, like misleading timers that count down to the end of a discount, claims that the supply is almost gone, and an overload of notifications from the app.

According to the ConsumentenBond, the Dutch consumer association that filed the complaint with the BEUC, the practices are unfair and damaging to the environment and society. They lead to overconsumption, and the clothes on Shein can contain harmful chemicals.

“This business model contributes to serious environmental damage, child labor, and worker exploitation. We call on European regulators to take strong action and force SHEIN to stop these harmful practices,” the ConsumentenBond stated.

The consumer associations want the European Commission and the network of European regulators to take action. In addition, they are also asking for an investigation into other webshops owned by large fashion companies that may be using the same manipulative tricks.

In a report about the practices of the Chinese company, consumer associations have said that they can provide additional evidence about the use of so-called dark patterns, like the manipulation of customers' emotions.

"For us, to be satisfactory, they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases,” BEUC said to Reuters about the practices.

Regulators in Europe recently concluded that Shein is breaking the rules for fair sales practices. The company is accused of doing this through fake discounts, misleading sustainability claims, and omitting information about customers' rights. Shein risks fines if the e-commerce group continues to do so.

“We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations,” Shein said in response to the complaints from the BEUC.