Brussels has launched an investigation into Shein, the China-founded ecommerce platform, amid concerns that the company is violating European consumer protection rules by selling illegal products.
An EU official said on Wednesday that there is “reasonable suspicion” of widespread violations of EU consumer protection laws by the company. Brussels is examining whether Shein pushed unfair contract terms, misleading price reductions and unfair commercial practices. There is already a similar investigation ongoing against Temu, the Chinese online shopping business.
It is the latest problem for Shein, the Singapore-headquartered fast fashion group that is planning to publicly trade its shares in London in the first half of 2025, targeting a valuation of ￡50bn. Donald Trump’s crackdown on tariff-free access for small goods could also dent its business model.