EU regulations concerning consumer rights are allegedly violated by Shein.

In response to the European Commission's request, popular fast fashion retailer Shein has announced plans to invest more than $15 million into its product safety testing and compliance tools. The investment is aimed at ensuring a safe, reliable, and enjoyable online shopping experience for European consumers.

The spokesperson for Shein stated that the company is working constructively with national consumer authorities and the EU Commission to demonstrate its commitment to complying with EU laws and regulations. This comes after the European Commission found that some of Shein's practices infringe on European Union consumer protection laws.

Shein is currently under investigation by the EU's Consumer Protection Cooperation Network. The investigation, which also includes Shein's fast fashion competitor Temu, focuses on the possibility that Shein offers fake discounts, pressures consumers, uses misleading information and sustainability claims, engages in deceptive product labeling, and hides its contact details.

If the issues identified by the European Commission at Shein are not resolved, national authorities—specifically those responsible for customs, consumer protection, and market surveillance in EU member states—can enforce compliance with EU law, including through sanctions, stricter customs controls, and possibly the abolition of the €150 customs exemption for small parcels, according to demands by European textile associations in September 2025.

Shein must respond to the Commission's findings within one month and propose commitments for addressing the identified issues. The current investigation into Shein is complementary to the previously announced investigation into the fast fashion giant for allegedly violating EU consumer protection laws.

It is important to note that this investigation is part of the European Commission's broader scrutiny of digital services. The findings were part of the European Commission's previously announced investigation into the fast fashion giant.

Shein has faced regulatory challenges from multiple countries, including the U.S., Vietnam, and Italy. However, the update to the story does not mention any specific regulatory challenges faced by Shein in these countries.

The investigation into Shein and Temu is the latest in a series of regulatory challenges faced by fast fashion companies. This underscores the importance of these companies adhering to EU laws and regulations to maintain consumer trust and ensure a fair and safe online shopping environment.

The European Commission has initiated a separate investigation to examine Shein's compliance with the Digital Services Act. The Digital Services Act is a new regulation aimed at ensuring that digital services, including e-commerce platforms, provide a safe and trustworthy environment for users.

As the investigation continues, it will be interesting to see how Shein addresses the concerns raised by the European Commission and how this will impact the fast fashion industry as a whole.