Shein under fire: Chinese e-commerce giant responds to EU crackdown

Shein says that it supports EU efforts to “enhance trust and safety for European consumers” on its platform.

The often tight-lipped clothing retailer was responding after the European Commission, the EU’s executive branch responsible for enforcing laws across the bloc, launched a special investigation into the Chinese platform late last week.

The European Commission initiated its probe in collaboration with the Consumer Protection Cooperation (CPC) Network, which includes consumer protection authorities from all 27 EU member states.

The Commission has already gathered information from some of these authorities and believes there are reasonable grounds to suspect Shein of breaching consumer protection laws, including selling unsafe products and using complex returns processes.

It has asked the company to provide details of the measures it takes to protect consumer rights, public health, and user wellbeing, as well as how it handles personal data.

Shein has until 27th February 2025 to respond to the investigating team and has told Impact Loop it plans to cooperate fully.

"We share the CPC Network’s goal of ensuring European consumers can shop online with peace of mind, and we intend to work closely with the CPC Network and the Commission to address any concerns," the company stated in an email to Impact Loop, shared by the firm's Head of Communications Robin Kiely.

Broader EU crackdown on e-commerce imports

The investigation into Shein’s consumer practices comes alongside a wider EU initiative aimed at cracking down on import tactics used by the platform and similar sites such as Temu.

Last week, the Commission unveiled a sweeping package of measures designed to tackle the surge in carbon-intensive parcel deliveries from outside the EU—an issue officials warn is damaging both the environment and fair competition.

One of the most significant proposed changes is scrapping the VAT exemption for parcels valued under €150. Additionally, a special handling fee is being considered for e-commerce goods imported directly to consumers.

“In response to the surge of low-value e-commerce imports, it is critical to finalise our customs union reform,” said Maroš Šefčovič, the European commissioner for trade, following the announcement.

Mounting media and political scrutiny

Shein has faced increasing media and political criticism in recent months. Outlets across Europe—from the BBC to Swedish tabloid Aftonbladet—have highlighted concerns over its labour practices, waste disposal and resale tactics. Last year, an investigation by Greenpeace Germany discovered hazardous chemicals in Shein’s clothing.

In Sweden, climate minister Romina Pourmokhtari has even called for an import ban on Shein goods, while Prime Minister Ulf Kristersson accused the company of "systematic rule-breaking."

As Impact Loop reported in January, resale platforms such as Vinted and Sellpy have continued to offer Shein products, while other second-hand marketplaces have sought to distance themselves from the brand amid mounting controversy.

Following Impact Loop's investigation into Shein resale practices, the company responded by announcing plans to invest over €14 million to strengthen its safety testing and regulatory compliance. It also revealed in a press release that it had appointed Mustan Lalani as its new global head of sustainability and was working to improve its environmental credentials, including developing a new polyester recycling process in collaboration with Donghua University in Shanghai.

In its latest statement to Impact Loop on Monday, in relation to the European Commission's investigation, Shein insisted that its business model “aims to reduce inefficiency and lower waste on materials and unsold inventory.”