logo
Shein hit with complaint from EU consumer group over 'dark patterns'

Shein hit with complaint from EU consumer group over 'dark patterns'

Time of India2 days ago

HighlightsThe Pan-European consumers organization European Consumer Organisation (BEUC) has filed a complaint with the European Commission against fast-fashion retailer Shein for employing 'dark patterns' to increase consumer purchases on its app and website. Shein's tactics include aggressive methods such as pop-ups urging customers to stay on the app for promotions, countdown timers creating a sense of urgency, and frequent notifications that can bombard users with up to 12 alerts in one day. The European Commission has already warned Shein about practices that violate EU consumer law and has stated that the company could face fines if it does not rectify these issues.
Pan-European consumers organisation BEUC filed a complaint with the European Commission on Thursday against online fast-fashion retailer
Shein
over its use of "dark patterns", tactics designed to make people buy more on its app and website.
Pop-ups urging customers not to leave the app or risk losing promotions, countdown timers that create time pressure to complete a purchase, and the infinite scroll on its app are among the methods Shein uses that could be considered "aggressive commercial practices", BEUC said in a report also published on Thursday.
The BEUC also detailed Shein's use of frequent notifications, with one phone receiving 12 notifications from the app in a single day.
"For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption," Agustin Reyna, director general of BEUC, said in an interview.
"For us, to be satisfactory they need to get rid of these dark patterns, but the question is whether they will have enough incentive to do so, knowing the potential impact it can have on the volume of purchases."
In a statement, Shein said: "We are already working constructively with national consumers authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations." It added that the BEUC had not accepted its request for a meeting.
Shein and rival online discount platform Temu have surged in popularity in Europe, partly helped by apps that encourage shoppers to engage with games and stand to win discounts and free products.
The BEUC has also previously targeted Temu in a complaint.
Shein's use of gamification, drawing shoppers to use the app regularly, has helped drive its success.
In the "Puppy Keep" game on the app, users feed a virtual dog and collect points to win free items. They can gain more points by scrolling through the app, and by ordering items, but must log into the game every day or risk losing cumulative rewards.
The BEUC noted that dark patterns are widely used by mass-market clothing retailers and called on the consumer protection network to include other retailers in its investigation.
It said 25 of its member organisations in 21 countries, including France, Germany and Spain, joined in the grievance filed with the Commission and with the European consumer protection network.
Late last month, the European Commission notified Shein of practices breaching EU consumer law and warned it would face fines if it failed to address the concerns.
The company is also under scrutiny from EU tech regulators on how it complies with EU online content rules.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

European stocks log second straight weekly gain on upbeat jobs data, trade optimism
European stocks log second straight weekly gain on upbeat jobs data, trade optimism

Economic Times

time35 minutes ago

  • Economic Times

European stocks log second straight weekly gain on upbeat jobs data, trade optimism

European stock markets saw gains for the second week. This was due to positive job data from the United States and easing trade worries. However, new tariffs on steel and aluminum impacted the auto sector. Germany is looking for a deal on car imports with the U.S. The European Central Bank hinted at ending rate cuts. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads European shares rose for a second straight week, buoyed by robust U.S. employment figures and diminishing concerns over trade friction that had previously rattled investor pan-European STOXX 600 rose 0.3% on Friday, and logged a 0.6% gain for the United States' better-than-expected jobs report relieved anxieties regarding the U.S. labour market's resilience, likely prompting traders to reassess how President Donald Trump 's trade policies might impact employment trends."The data fuelled optimism that the U.S. jobs market, and so the U.S. economy, is weathering the Trump tariff shock better than expected," said Ipek Ozkardeskaya, senior analyst at Swissquote sentiment drew additional support from signs of easing in the U.S.-China trade relationship following Thursday's telephone conversation between Trump and Chinese President Xi the market was also reminded this week of protectionist fervour, as the White House's doubled tariffs on steel and aluminum imports took automotive sector , particularly exposed to these metal duties, bore the brunt, shedding 1.8% over the Chancellor Friedrich Merz indicated he would pursue a deal for duty-free U.S. car imports into Europe in exchange for equivalent tariff waivers on European exports to the United bourses such as Germany's DAX and France's also recorded a second straight week of gains, while and Spain's IBEX logged its eight consecutive week of advances - its longest in nearly four European Central Bank's widely anticipated interest rate cut was overshadowed by President Christine Lagarde's hawkish signals suggesting the monetary easing cycle may be approaching its conclusion. The stance prompted traders to dial back expectations for further rate are also monitoring whether the public spat between Trump and Tesla CEO Elon Musk could spill over into broader markets."Comments from Musk yesterday about Trump tariffs, putting the U.S. in recession in the second half of this year combined with weak data this week is causing investors to sit out for the time-being," said Fiona Cincotta, senior market analyst at City Friday, the financial sector emerged as the standout performer, propelled by UBS , which rose 3.8% after Swiss authorities proposed more stringent rules that could require an additional $26 billion in core capital reserves for the banking other stocks, Dassault Systemes fell 1.2% after the French software company extended the target period of its medium-term earnings per share forecast by one fell 6.2%, placing it among the worst performers on the STOXX 600, after Exane BNP Paribas downgraded the stock to "underperform" from "neutral".On the macroeconomic front, German exports and industrial production contracted more severely than anticipated in April, as U.S. demand faltered following months of accelerated purchasing activity driven by tariff the Channel, British housing prices experienced a steeper-than-expected decline in May.

European stocks log second straight weekly gain on upbeat jobs data, trade optimism
European stocks log second straight weekly gain on upbeat jobs data, trade optimism

Time of India

time35 minutes ago

  • Time of India

European stocks log second straight weekly gain on upbeat jobs data, trade optimism

Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel European shares rose for a second straight week, buoyed by robust U.S. employment figures and diminishing concerns over trade friction that had previously rattled investor pan-European STOXX 600 rose 0.3% on Friday, and logged a 0.6% gain for the United States' better-than-expected jobs report relieved anxieties regarding the U.S. labour market's resilience, likely prompting traders to reassess how President Donald Trump 's trade policies might impact employment trends."The data fuelled optimism that the U.S. jobs market, and so the U.S. economy, is weathering the Trump tariff shock better than expected," said Ipek Ozkardeskaya, senior analyst at Swissquote sentiment drew additional support from signs of easing in the U.S.-China trade relationship following Thursday's telephone conversation between Trump and Chinese President Xi the market was also reminded this week of protectionist fervour, as the White House's doubled tariffs on steel and aluminum imports took automotive sector , particularly exposed to these metal duties, bore the brunt, shedding 1.8% over the Chancellor Friedrich Merz indicated he would pursue a deal for duty-free U.S. car imports into Europe in exchange for equivalent tariff waivers on European exports to the United bourses such as Germany's DAX and France's also recorded a second straight week of gains, while and Spain's IBEX logged its eight consecutive week of advances - its longest in nearly four European Central Bank's widely anticipated interest rate cut was overshadowed by President Christine Lagarde's hawkish signals suggesting the monetary easing cycle may be approaching its conclusion. The stance prompted traders to dial back expectations for further rate are also monitoring whether the public spat between Trump and Tesla CEO Elon Musk could spill over into broader markets."Comments from Musk yesterday about Trump tariffs, putting the U.S. in recession in the second half of this year combined with weak data this week is causing investors to sit out for the time-being," said Fiona Cincotta, senior market analyst at City Friday, the financial sector emerged as the standout performer, propelled by UBS , which rose 3.8% after Swiss authorities proposed more stringent rules that could require an additional $26 billion in core capital reserves for the banking other stocks, Dassault Systemes fell 1.2% after the French software company extended the target period of its medium-term earnings per share forecast by one fell 6.2%, placing it among the worst performers on the STOXX 600, after Exane BNP Paribas downgraded the stock to "underperform" from "neutral".On the macroeconomic front, German exports and industrial production contracted more severely than anticipated in April, as U.S. demand faltered following months of accelerated purchasing activity driven by tariff the Channel, British housing prices experienced a steeper-than-expected decline in May.

X plays up blue checkmark disclaimer to stave off possible EU fine, source says
X plays up blue checkmark disclaimer to stave off possible EU fine, source says

The Hindu

timean hour ago

  • The Hindu

X plays up blue checkmark disclaimer to stave off possible EU fine, source says

Elon Musk's social media company X has highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators, a person familiar with the matter said. The European Commission in July last year charged X with deceiving users, saying that the blue checkmark does not correspond to industry practices and that anyone can pay to get a "verified" status. The blue checkmark had previously indicated that an account belonged to a public figure whose identity was verified but Musk changed it to indicate it belonged to a paid subscriber after acquiring X in 2022. X has not admitted wrongdoing and the prominent display of the blue checkmark disclaimer is not part of any settlement proposal with the EU tech enforcer, the person said. The prominent display started a week ago. The Commission said it took note of X's announcement. "Our investigation related to the blue checkmark is ongoing," a spokesperson said. X did not immediately respond to an emailed request for comment. The EU probe is under the Digital Services Act which requires large online platforms to do more to tackle illegal and harmful content or risk fines as much as 6% of their global annual revenue. Bloomberg was the first to report on the blue checkmark disclaimer.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store