Consumer authorities give Shein a month to address claims of fake discounts and pressure sales tactics
Potential breaches include showing price reductions that are not based on original prices and pressure tactics like using false deadlines to pressure buyers.
The CCPC, along with the European Commission and consumer authorities in Belgium, France and The Netherlands has has asked Shein to rectify some of its practices and to propose ways to address them.
A failure to comply may lead to penalties, including fines.
The CCPC here also said customer should easily be able to reach Shein with complaints or to seek customer support, including easy to find contact details and that the retail is obliged to provide correct information about consumers' rights to return products and or to refunds.
'Consumers should be allowed to shop without being put under pressure by fake deadlines or misled by fake discounts,' said Patrick Kenny, CCPC Commission member, said.
'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.
'Online marketplaces have a legal obligation to provide transparent and honest information about the products they sell, and consumers' rights around returns.'
The ongoing investigation, which is being carried out through the European Commission's Consumer Protection Cooperation (CPC) Network, is co-led by consumer authorities in the countries involved, including the CCPC.
Singapore-headquartered Shein can now make proposals to address the concerns raised .
If Shein fails to address the concerns, the national authorities can investigate further and potentially take enforcement measures, which may include fines based on its annual turnover in the each of the member states.
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