Chinese online retailer Shein ordered to stop fake discounts and countdown timers

The well-known online shop Shein is not complying with consumer rules in Europe, according to a study by European regulators, including the Dutch Authority for Consumers and Markets (ACM). Shein has one month to adjust its website. Failure to comply may result in fines.

Shein displays fake discounts, uses countdown timers to pressure customers, and does not always provide clear information on returns or refunds. Additionally, sustainability claims are misleading.

The ACM states this leads to unfair competition with other online retailers. "If one follows the rules and the other doesn’t, it creates an unfair playing field," explains an ACM spokesperson.

Shein is also subject to the EU's Digital Services Act. The European Commission is assessing whether the company does enough to protect consumers.

If no changes are made, countries like the Netherlands can take action. "We can impose fines of up to €900,000 per violation for unfair trade practices," the ACM spokesperson added.

The Netherlands collaborated with Belgium, France, Germany, and Ireland in the investigation. "Since Shein operates in many countries and violates consumer rights, we must act together," said ACM board member Martijn Ridderbos.

Shein is not the only platform under scrutiny. "A similar investigation is underway regarding Temu," the ACM noted.