The European Commission on Wednesday announced an investigation into the Chinese e-commerce marketplace Shein for allegedly violating EU consumer protection rules.

There is reasonable suspicion of widespread violation of the EU’s laws on unfair contract terms, price indication, and unfair commercial practices, an EU official told reporters in Brussels.

The commission noted that the probe would be carried out by the bloc’s national consumer protection authorities under its supervision.  

It added that Shein was informed of the investigation.

Already last June, the commission requested detailed information from Shein on its approach to tackling illegal products, consumer manipulation, and the traceability of traders.

Similar proceedings are ongoing against Chinese marketplace Temu over allegations of false discount campaigns, fake reviews, and missing and misleading information on consumers’ legal rights.

A spokeswoman for Shein said the company’s regulator and compliance teams would engage with partners at the European and national level.

The spokeswoman said, “We welcome efforts that enhance trust and safety for European consumers when shopping online.’’

Shein and Temu grew quickly in size in recent years, with goods mostly being shipped directly from China.

The online retailers are popular due to their low prices; however, the platforms are controversial.

Trade representatives, politicians, and consumer advocates criticise the quality of the products, the lack of controls, unfair competition, and the environmental impact of the shipments.

The portals reject the accusations.

The success of the platforms also contributes to a steep increase in low-value parcels arriving in the EU.

In 2024, around 4.6 billion parcels with a value not exceeding €150 ($156) entered the EU market, corresponding to 12 million parcels per day, according to commission figures.

“This is twice as many as in 2023 and three times as many as in 2022,’’ the commission said. 

(dpa/NAN)