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Warning for Shein: Illegal business practices uncovered!
Consumer advice center warns against Chinese cheap fashion retailer Shein | Money - Illegal business practices and violations of EU directives. Now for the details!
Warning for Shein: Illegal business practices uncovered!
The Federal Association of Consumer Organizations (VZBV) has warned the Chinese online retailer Shein. The warning was issued due to unlawful business practices and violations of the EU Digital Services Act. This prohibits manipulative designs of online platforms. Shein now has the opportunity to issue a cease and desist declaration and make any necessary adjustments.
Some of the shortcomings criticized by consumer advocates include seemingly arbitrary discount levels, lack of information in star reviews and the phenomenon of greenwashing. The latter refers to the fact that Shein suggests making a positive contribution to environmental protection with regard to parcel shop pickup, even though the platforms are increasingly relying on air transport.
It is also worth mentioning that Shein has not yet responded to the written request regarding the allegations. The VZBV makes it clear that the Chinese fast fashion provider is misleading consumers and disregarding consumer protection rules. Ramona Pop, board member of the VZBV, emphasizes the need for Shein to make the necessary adjustments to comply with legal requirements.
It is important to note that retail experts and associations have been calling for tougher action against low-cost Chinese marketplaces for some time. The shopping app Temu also came under fire for similar violations. Temu has contradicted the allegations and has not issued a cease and desist declaration. Consumer advocates are now examining the possibility of filing a lawsuit against the trading platform.