Online retailer Shein vows to fix website after consumer body warning

The Shein logo can be seen on a smartphone. Shein was issued a warning at the end of April for several violations. The provider was "leading consumers up the garden path and disregarding consumer protection rules," it said. "We are working with the Federation of German Consumer Organizations [vzbv] to address their concerns," a Shein spokesman told dpa on 17 May. Monika Skolimowska/dpa

Following a warning from German consumer protection organizations about information on its website, the shopping platform Shein has signed a cease-and-desist declaration, a Shein spokesman told dpa on Friday.

Shein was issued a warning at the end of April for several violations. The provider was "leading consumers up the garden path and disregarding consumer protection rules," it said.

"We are working with the Federation of German Consumer Organizations [vzbv] to address their concerns," the Shein spokesman said.

Shein plans to "refrain from misleading practices in Germany in future," said vzbv board member Ramona Pop. The provider must improve its website by June 1. The proceedings were thus concluded out of court. If an offence is repeated, the association can demand a fine.

The vzbv criticized what it said were manipulative designs, complicated complaint channels, hidden contact options, seemingly arbitrary discount levels and a lack of information in star ratings. Pop-up windows with the message "You could receive vouchers now! Are you sure you want to go?" were displayed to shoppers.

The vzbv also accused Shein of violating the Digital Services Act (DSA). The new EU directive provides for strict regulation of online content and lays down rules that all providers must adhere to. Among others, they are obliged to take strict action against illegal content such as hate speech and political agitation.

Stricter requirements apply to very large online platforms. Platform operators who violate these requirements can be fined. The EU is investigating Facebook, Instagram and X, among others, for alleged violations of the DSA.

Shein, considered one of the largest fashion companies in the world, and was officially categorized as a very large platform by the EU at the end of April.

Following the designation, the retailer must comply with the strictest provisions of the law within four months. Until then, the rules for all medium-sized or smaller providers will continue to apply.

Shein was founded in China, but has since relocated its headquarters to Singapore.

The Chinese shopping portal Temu was also recently warned and subsequently signed a cease-and-desist declaration.

Retail experts and associations have repeatedly called for stricter action to be taken against online retailers in recent months. "Companies like Shein turn shopping into a game that can be addictive. Consumer law is not prepared for such business models and urgently needs an update," said vzbv head Pop.