Chinese eCommerce and fast fashion giant Shein face a fresh scrutiny in the European Union in relation to consumer protection rules following the launch of a coordinated action of the Consumer Cooperation Network Protection (CPCN).
The action is made with reference to the directive on EU’s unfair business practices, consumer rights directive, unfair contract directive, directive of pricing index, and e-commerce directive– Shein’s market.
The movement has been announced on Wednesday by the European Commission, as it has simultaneously presented a package of measures and reforms aimed at dealing with a lot of risks linked to the growth of low -value trade -activity in recent years.
During a press conference announcing a E-commerce communication EU lawmakers have warned that “tsunami” of cheap imports flooded the market with products that do not meet the standards of the block – creating risks of health and security for European consumers.
Unsafe products such as toys with small removable parts that could present a suffocating risk, electrical devices with inadequate insulation, and chemicals in clothing have been cited as examples of dangers linked to cheap imports.
“Recent evidence and findings of trials made by national authorities and consumer organizations leave us undoubtedly – the evidence here is clear – up to 96% of products tested and sold on these platforms are not fully in line with our rules and our security standards,” said, “said The Commissioner of Rule Michael McGrath.
The I say About 4.6 billion “low-value shipments” (meaning goods worth no more than € 150) entered the market-equivalent to 12 million parcels daily-which is twice as many as in 2023 and 3x 2022.
The explosion in Ultra affordable business also raises environmental and competitive concerns in the EU.
Lawmakers have said that the bunch of things involved needs multilateral access, which both seeks to use a full range of existing laws in relevant areas-as the EU digital services law, its overall product security and product security regulation and Ecodesign rules – At the same time, pushing legislative reforms and additional rules in other areas, as related to usual duties.
Safe and sustainable business
The commission’s communication exhibits what is composed as a “comprehensive EU tool for a safe and sustainable e-commerce”, with the proposal encompassing large ticket problems such as custom reforms and targeted measures for imported goods, as well as call for consumer protection and competition. obligation to be pushed forward in this area.
(Consumer protection, it is worth noting that while the commission plays a coordinating role in the CPCN, effective enforcement of laws in this area falls to member-level authorities-DO is just such centralized activity that the EU itself can do here. Hence its loud and public call for activity.)
Communication also encourages adoption of the first action plan on sustainable products, to help respond to environmental challenges presented by the growth of business, as well A proposed amendment to the Waste Framework Directive – which focuses on treating textile wastes.
On Wednesday, the commission also ran a plan to submit “Digital Justice Act” – which McGrath said it would aim to “strengthen consumers protection in the digital sphere in a intended way”.
The EU has already taken some actions in this area – sending a request for information to Shein and another cheap trading platform Thase Last JuneUnder the Digital Services Act (DSA), after the two platforms became subject to centralized EU overview after their appointments as very large online platforms (VLOPs). (While, like Shein, Temu is the purpose of consumer concerns: Back in May Consumer groups presented a series of coordinated complaints against it, accusing it of violating the DSA.)
Since March 2024 The commission also had an open DSA inquiry on the Internet market, AliExpress, another importer of cheap goods into the block. And since starting to operate the Internet domain framework, the EU has identified Ecommerce as one of its mandatory priorities – which EVP Henna Virkunen has repeated this today.
“We will also prioritize and intensify the commissioning control and fulfillment of the rules applicable to online markets under the law during press information.
Customs reform
On reforming the EU customs union, the block had a proposal on the table since 2023 – which would remove the duty relief currently given to packages with less than € 150.
During today’s information, Maroš Šefčovič, the Commissioner for Business and Economic Security, said the proposal envisaged needs related to an increase in the outbreak of business and contained “critical measures” requiring online platforms to assume more responsibility as importers.
“The current practice of treating citizens as importers for customs purposes is useless to ensure their protection,” he warned, also emphasizing the need for “improving control capacities”.
“In response to the growth of low -value trading imports, it is important to end our customs union reform and perhaps a previous burden to 2026,” he added.
The commission suggests that member states should remain behind “possible complementary measures”, as an undisputed handling fee for goods delivers directly to consumers. Other actions that it floats in this area include launching a “customs priority control area” dedicated to business goods; and launching coordinated actions that seek to quickly identify and remove dangerous goods such as product securities.
Šefčovič has admitted that communication represents a “call for action”, prompting the EU lawmakers and other stakeholders “to work collectively … to ensure that every citizen benefits from a reliable online market”.
Responding to the commission proposal, BulucThe European Consumer Organization, pushed forward for “urgent and ambitious activity”. “Tests of consumer groups Show that many products sold online, such as toys and textiles, are unsafe. If the EU is serious about the protection of consumers and hitting the road to decimalization, it must ensure that everyone plays by the same rules, “said its DG, Agustín Reyna, in a statement.
“Consumer groups fully support the European Commission and National Authorities by launching mandatory actions, such as the ongoing against which we launched Before And the announced today against Shein, ”he added.
Shein was contacted to comment on CPCN’s performance. Spokesman Jakub Hera Adamowicz emailed a statement in which the company wrote: “We share the purpose of the CPC network to ensure European consumers buy online with calm, and we intend to work closely with the CPC network and the commission to address any concerns. ”
In broader remarks responding to the commission’s proposed tool for safe and sustainable business, Shein wrote that it welcomes “efforts that improve trust and security for European consumers when buying online”, as well as voiced support for “level competitive playing field “.
“Shein’s custom model aims to reduce inefficiency and reduce waste of material and unresolved inventory, allowing us to offer great style and quality to accessible prices,” it also said, adding: “Our regulatory and executive teams across the EU will participate in our partners at EU and National Government level to study these recommendations and examine how Shein can play our role in strengthening our industry to improve the online purchase experience for European consumers.
