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.
Retail expert Kai Hudetz still sees major difficulties in dealing with the platforms. "This does not solve the problems of unfair competition. The same safety and sustainability standards must apply to Temu and Shein as to other providers within the EU," said the managing director of the Cologne-based retail research institute IFH on Friday, referring to a second major online retailer.
It is right that Shein and Temu have to comply with stricter guidelines in accordance with the EU's Digital Services Act, Hudetz said. "The core problem remains that these platforms offer goods at extremely low prices, at least some of which do not meet our quality and sustainability requirements," said Hudetz, adding that there is a lack of certification in many cases.
A representative survey by IFH shows that 62% of respondents see a major risk that the items are of inferior quality, but one in two people say they buy products from Temu and Shein that they would otherwise not be able to afford.
A total of 43% buy more frequently from online retailers since the sharp rise in inflation. Two thirds specifically look for bargains there
Of those surveyed, 54% have had a positive experience with the shopping portals, with this figure rising to 74% among consumers under 30.
