German consumer advocates had warned the online retailer Shein for several violations. Now the company has given in and has to adapt its German website.
After receiving a warning from German consumer advocates, the shopping platform Shein has signed a cease and desist declaration. A spokesperson for the company said this today. The provider now has to improve its German website by June 1st.
“We are working with the Federal Association of Consumer Organizations (vzbv) to address their concerns,” said a Shein spokesman. The Federal Association of Consumer Organizations (vzbv) confirmed the process. Shein wants to “refrain from misleading practices in Germany” in the future, said board member Ramona Pop.
The proceedings were therefore concluded out of court. If the company’s violation is repeated, the association can demand a penalty.
Manipulation and arbitrary discounts
At the end of April, Shein was warned for several violations. This involved, among other things, manipulative designs, complicated complaint channels, hidden contact options, seemingly arbitrary discount levels and a lack of information in star reviews. The provider is leading consumers “on the slippery slopes and disregarding consumer protection rules,” said the vzbv.
The association also accused the company of violating the EU digital services law, the Digital Services Act (DSA). This provides for strict regulation of content on the Internet and sets out regulations that all providers must adhere to. The EU is currently investigating Facebook, Instagram and X (formerly Twitter), among others, for alleged violations of the DSA.
Criticism of quality and climate balance
Shein is considered one of the largest fashion companies in the world and was officially classified as a very large platform by the EU at the end of April. Once designated, the dealer must comply with the most stringent provisions of the law within four months. Until then, the rules continue to apply to all medium-sized or smaller providers.
Shein was founded in China but has since moved its headquarters to Singapore. The platform is known for its cheap fashion. It tempts with extreme bargains, but is repeatedly criticized for poor quality and, not least, the catastrophic climate and environmental impact of the products.
Temu also warned
The Chinese online retailer Temu is in a similar situation to Shein. He was also warned by consumer advocates in March and then signed a cease and desist declaration. This week, consumer advocates from various European countries filed a complaint against Temu, alleging, among other things, manipulation.
In recent months, retail experts and associations have repeatedly called for stricter action against online retailers. “Companies like Shein turn shopping into a game that can be addictive. Consumer law is not prepared for such business models and urgently needs an update,” said vzbv boss Pop.
The deputy general manager of the German Trade Association (HDE), Stephan Tromp, said last week: “Test purchases by our own member companies as well as figures from the Federal Network Agency show that a large proportion of the products purchased on these platforms often do not comply with product safety and security comply with local regulations.”