Bloomberg reported on the 3rd (local time) that the European Union (EU) is set to begin an investigation into Chinese fast fashion company Shein for potential violations of consumer protection laws. Depending on the investigation results, Shein could face fines.
Bloomberg cited multiple sources stating that the EU Commission, together with four member states, plans to initiate an investigation targeting Shein. The decision on whether to impose fines will be made by the respective national governments.
The EU Commission has collaborated with the Consumer Protection Cooperation (CPC) network in investigations of online platforms. The CPC network is an organization where 27 EU member states, along with non-member countries Norway and Iceland, jointly investigate cases of EU consumer protection law violations. Companies found to have violated the law can be fined by regulatory authorities in each EU member state.
Previously, in November last year, the EU Commission notified Chinese e-commerce platform Temu and Apple of potential consumer protection law violations. It also launched an investigation into Temu for violations of the Digital Services Act (DSA).
A Shein spokesperson said the company plans to work closely with regulators to address the concerns. The EU Commission did not respond to Bloomberg’s request for comment.
Meanwhile, Bloomberg also reported that the EU Commission is expected to announce new policies this week aimed at cracking down on e-commerce platforms used to deliver unsafe products from countries outside the EU, including China.
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