EU calls on Shein to respond to claims of fake discounts and pressure selling
Ireland's Competition and Consumer Protection Commission (CCPC) is co-leading the investigation which has called on the online marketplace to address several issues including allegations of fake discounts, pressure selling tactics and unclear information regarding customer rights.
Advertisement
The CCPC said fake discounts potentially include pretending to offer better deals by showing price reductions that are not based on actual prior rates as required by EU law.
It said other issues include using false deadlines to pressure consumers to purchase, displaying incomplete or incorrect information about consumer's rights on returns and refunds, deceptive product labels, misleading or deceptive claims about sustainability benefits, and making it difficult for consumers to contact Shein with questions or complaints.
Information has also been requested to assess the company's compliance with further obligations including those around product rankings, ratings and reviews, and third-party sellers.
The CCPC said Shein has one month to propose commitments on how they will address the identified consumer law issues.
Advertisement
The EU Commission probe is being conducted along with national consumer authorities in Belgium, France and the Netherlands.
Depending on the company's reply, the EU consumer protection network may enter a dialogue with the retailer.
If Shein fails to address the concerns, national authorities can investigate further and may take enforcement measures to ensure compliance, which may include fines based on its annual turnover in the relevant member states.
Patrick Kenny, CCPC Commission member, said: 'Consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts.
Advertisement
'They also need clear information about how consumers can contact the company, how to return an item and receive a refund.
'In this case, the CCPC and the CPC Network have identified several practices that could mislead consumers or undermine their consumer rights.
Ireland
Ireland will need dedicated clinic to deal with ph...
Read More
'E-retailers and online marketplaces have a legal obligation to provide transparent and honest information about the products they sell, and consumers' rights around returns.
The CCPC takes any breaches of the law very seriously and looks forward to constructive engagement with Shein during the course of this investigation.'
Advertisement
Shein has been contacted for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
9 minutes ago
- BBC News
CCTV released of suspected Lowestoft storage firm arsonist
Police have released CCTV images of a man they want to trace in connection with a large fire at a removals and storage crews from Norfolk and Suffolk were called to Britannia Alan Cook, on Pinbush Road in Gisleham, Lowestoft, at about midnight on 8 Police said it was treating the incident at the family-owned business as arson and has appealed for witnesses."Officers have studied CCTV footage that show a man acting suspiciously climbing over a fence of the premises and [he] is seen on or near containers," a spokesperson said. About 15 fire vehicles went to the incident. People living nearby were advised to keep windows and doors closed because of the smoke. No-one was inside but customers' possessions were Fire and Rescue Service said its crews had spent the night tackling the flames. A statement the removals and storage company posted said: "We are heartbroken by the far-reaching impact this has had on the livelihoods of our valued customers, our dedicated staff, our family business." Follow Suffolk news on BBC Sounds, Facebook, Instagram and X.
The Guardian
9 minutes ago
- The Guardian
Fifa facing multibillion-pound compensation claim from former players
Fifa is facing a multibillion-pound claim for compensation from a group of former players after last year's ruling by the European court of justice (CJEU) that its transfer rules are unlawful. The Justice for Players foundation, a Dutch group that has the former England assistant manager Franco Baldini on its board, has served notice of its intention to file a class action against Fifa and the football associations of France, Germany, the Netherlands, Belgium and Denmark. Justice for Players is seeking compensation on behalf of players who have lost income because of Fifa's transfer rules since 2002. It says the legal case will involve about 100,000 players and is worth billions. The claim will be filed in the district court of Midden-Nederland, with the Netherlands chosen as the jurisdiction beacuse Dutch law permits claims from anyone who has worked within the European Union and the United Kingdom. The Football Association is understood to have been sent a copy of the letter before action. Although not named as a defendant, it could be added at a later date. Fifa and the five domestic FAs have been given until September to respond. The compensation claim is the result of the CJEU judgment last October in the case brought by former Chelsea and France midfielder Lassana Diarra, who sued Fifa after the world governing body refused to issue him with an international transfer certificate (ITC) to join the Belgian club Charleroi in 2016 after he was found to have breached his contract with Lokomotiv Moscow two years earlier. Fifa fined Diarra €10.5m and suspended him from football for 15 months for breaching his contract, in a ruling upheld on appeal at the court of arbitration for sport. After blocking his registration at Charleroi, Fifa was then hit with a counterclaim from Diarra, with the CJEU ruling last year that its transfer regulations were unlawful. The CJEU found that the Fifa regulations on the status and transfer of players infringed EU competition law and the right to free movement of workers. Fifa has amended its transfer regulations, although the new rules have not been accepted by the international players' union, Fifpro. The Justice for Players foundation is understood to have been set up this year with the intention of bringing a mass legal action. Diarra's lawyer, Jean-Louis Dupont, who won the landmark case at the CJEU on behalf of Jean-Marc Bosman which established the principle of free movement for players out of contract in 1995, is advising Justice for Players. Sign up to Football Daily Kick off your evenings with the Guardian's take on the world of football after newsletter promotion The legal letter sent to Fifa makes reference to the class action being a multibillion claim. This figure is understood to be based on independent analysis from economists at Compass Lexecon, who have estimated that players would have earned about 8% more over their careers since 2002 had Fifa's transfer regulations not been unlawfully restrictive. The CJEU judgment ruled that Fifa's regulations restricted free movement by establishing unlawful criteria for determining compensation to be paid by a player who breaks their contract, allowing the national federation of the former club to withhold a player's ITC, making the player's new club liable for the compensation to be paid to the former club and allowing Fifa to impose disciplinary sanctions on the player and their new club. Fifa has been contacted for comment.
BBC News
39 minutes ago
- BBC News
Secret filming expose 'madams' involved for Kenya child-sex trade
One BBC Africa Eye investigation don expose how women, wey dey known as "madams", don chook children as young as 13 into prostitution for Kenya. For di transit town of Maai Mahiu, for Kenya Rift Valley, trucks and lorries dey waka di streets day and night dey transport goods and pipo across di kontri into Uganda, Rwanda, South Sudan, plus di Democratic Republic of Congo. Di key transport hub, wey be just 50km (31 miles) east of di capital, Nairobi, dey known for prostitution, but na also breeding ground for child sexual abuse. Two undercover investigators, wey pose as sex workers wey wan learn how to become madams, bin spend months earlier dis year penetrating di sex trade for di town. Dia secret filming reveal two different women wey tok say dem know say e dey illegal and dem introduce di investigators to underage girls for di sex industry. Di BBC bin give all dia evidence to di Kenyan police for March. Di BBC believe say di madam don move location since den. Di police say dem no fit trace di women and young girls we feem. To date, dem neva make any arrests. To declare pesin guilty dey rare for Kenya. For successful prosecutions, police need testimonies from children. Often vulnerable minors wey dey too afraid to testify. BBC small-small footage wey dem feem for di street in di dark bin show one woman, wey call herself Nyambura, she dey laugh as she say: "Dem still be children, so e dey easy to manipulate dem wit just sweets." "Prostitution na cash crop for Maai Mahiu; di truckers basically dey ginger am. And dat na how we benefit. Dem don normalise am for Maai Mahiu," she explain, and add say she get one girl as young as 13, wey already don dey "work" for six months. "E become very risky wen you dey deal wit minors. You no fit just bring dem out openly in town. I dey only sneak dem comot at night in great secrecy," Nyambura tok. Di act of prostitution by consenting adult no be criminal offence under Kenyan national law but many municipal by-laws don ban am. E no dey banned for Maai Mahiu, wey be part of Nakuru county. Under di penal code, e dey illegal to live from di profit of prostitution, either as a sex worker or third party wey dey facilitate or profit from prostitution. Di trafficking or sale of minors under di age of 18 carry prison sentence wey range from 10 years to life. Wen dem ask Nyambura weda di clients dey wear condoms, she say she dey usually make sure say dem use protection but some still get strong head. "Some children wan earn more money [so dem no go use am]. Dem dey force some of dem [not to use condom]," she tok. For anoda meeting, she bin lead di undercover investigator go one house wia three young girls sidon on top one chair, anoda one sidon on one hard-backed chair. Nyambura later comot di room, wey give investigator opportunity to follow di girls tok alone. Di girls describe say dem face sexual abuse repeatedly on a daily basis. "Sometimes you fit have sex wit multiple pipo. Di clients go force you to do unimaginable tins," one of di girls tok. No recent statistics dey ground on di number of children wey dey forced to work for Kenya sex industry. For 2012, di US State Department Country Report on Human Rights Practices in Kenya bin cite estimate of 30,000, one figure dem get from Kenyan govment and now defunct non-governmental organisation (NGO), Eradicate Child Prostitution for Kenya. Oda studies focus on specific areas, especially along di kontri coast – wey dey known for dia tourist resorts. One 2022 report for di NGO Global Fund to End Modern Slavery reveal say dem dey force almost 2,500 children into sex work for Kilifi and Kwale counties. One second undercover investigator bin gain di trust of one woman wey call herself Cheptoo and e hold plenty meetings wit her. She say selling young girls mean say she fit "earn a living and be comfortable". "You carry out dis kind of business in great secrecy becos e dey illegal," she tok. "If anyone tok say dem want young girl, I go ask dem to pay me. We also get our regulars who dey always come back for dem." Cheptoo carry di undercover investigator go one club to meet four of her girls. Di youngest tok say she be 13 years old. Di odas say dem be 15. She tok about di profit she dey make from dem, she say for every 3,000 Kenyan shillings ($23; £17) di girls dey deliver, her share na 2,500 shillings ($19; £14). For anoda meeting, for one house for Maai Mahiu, Cheptoo leave di undercover investigator alone wit two underage girls. One of dem tell her say on average, she dey have sex wit five men a day. Wen dem ask wetin go happun if she no gree to have sex without condom, she say she no get choice. "I have to [have sex without a condom]. Dem go drive me comot, and I no get anywia to run to. I be orphan." Kenya sex industry dey complex, na dark world wia both men and women get hand in facilitating child prostitution. E no dey clear how many children dey forced into sex work for Maai Mahiu, but for dis small town of around 50,000, pipo e dey easy to find dem. One former sex worker, wey pipo sabi as "Baby Girl", now dey provide protection for Maai Mahiu for girls wey escape sexual abuse. Di 61-year-old bin work for di sex industry for 40 years – she bin first see herself on di streets in her early twenties. She bin dey pregnant and she get three young children wit her afta she run leave her husband sake of domestic violence. For her wooden kitchen table for one bright parlour for di front of her house, she introduce BBC to four young women wey all of dem dey forced into sex work by madams for Maai Mahiu wen dem be children. Each girl share similar stories of broken families or abuse at home – dem come to Maai Mahiu to escape, only to dey violently abused again. Michelle describe how, at 12 years old, she lost her parents to HIV and dem drive her to di streets wia she meet one man who give her somewhere to live and begin dey sexually abuse her. "I literally get to pay am in kind for educating me. I reach my limit, but I no get anybody," she tok. Two years later, one woman wey turn out to be a madam for Maai Mahiu bin approach her and force her into sex work.
