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EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more

June 5, 2025
in Investing
EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more
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The European Consumer Organisation (BEUC) has filed a formal complaint with EU authorities against Chinese fast fashion giant Shein, alleging that the company uses a series of manipulative digital marketing techniques of “dark” practices to influence consumer behaviour.

The complaint, backed by 21 national watchdogs, claims these practices encourage overconsumption, mislead customers, and violate EU consumer protection laws.

Fake countdown timers, low-stock alerts pressuring users to buy

The 29-page complaint submitted to the European Commission highlights Shein’s use of alleged fake countdown timers, low stock alerts, nagging practices that create a fear of missing out, and forced sign-ups as examples of deceptive techniques that pressure users into making quick purchases.

Among the practices cited is “confirm shaming,” where shoppers are made to feel guilty for abandoning their carts or skipping sales.

The practice was “leading to severe detrimental consequences on consumers and society at large”, creating wardrobes full of barely used clothes, and production methods that may use chemicals that are harmful to the environment, the BEUC said.

It added that Shein’s marketing tactics are particularly harmful in the context of the environmental crisis caused by fast fashion.

The watchdog further accused Shein of leveraging misleading product labels, falsely suggesting added value in features that are already required by EU law.

The complaint urges regulators to mandate Shein to back up marketing claims—such as “stocks are low” or “sales ending soon”—with actual data.

If such proof cannot be provided, BEUC argues the company should be banned from using such messages in the European Union.

Environmental and health concerns deepen the case

Beyond concerns of consumer manipulation, BEUC’s complaint also cites Shein’s role in promoting unsustainable consumption habits.

The group claims the brand encourages buying habits that harm the environment and may expose users to potentially hazardous chemicals found in cheap textiles and accessories.

“On the one hand, they promote excessive spending and trigger economic losses for consumers. On the other hand, they stir overconsumption of clothing, which often also contains harmful chemicals, hence misleading and disempowering consumers in their efforts towards the green transition,” it said.

Ultimately, these practices fuel the environmental and societal problems caused by the fast fashion industry,” it said in its submission.

The latest complaint follows a growing wave of scrutiny from European regulators.

In February, the EU and its Consumer Protection Cooperation (CPC) network began a formal investigation into Shein’s compliance with EU consumer laws.

Last week, Shein was notified by the Commission and CPC network of multiple legal breaches, including fake discounts and deceptive product descriptions.

Shein defends itself, criticises watchdogs’ refusal to meet

In response, Shein expressed disappointment at BEUC’s refusal to engage in dialogue, claiming that the organisation had rejected repeated meeting requests over several years.

“This unwillingness to engage is extremely disappointing, particularly in light of Shein’s growing popularity among European consumers,” it said.

“Consumers would be best served if BEUC agreed to meet with us, allow us to explain our operations, and discuss openly and transparently any concerns they have. Unfortunately, they have chosen to reject each and every one of our many meeting requests over the last several years,” it said.

Despite the defence, Shein’s mounting regulatory troubles in Europe mark a critical moment for the global fast fashion brand, which faces increasing pressure to reform its marketing strategies, product safety practices, and environmental impact in one of its fastest-growing markets.

The post EU watchdog accuses Shein of ‘dark’ practices to ‘nag’ and ‘shame’ consumers into buying more appeared first on Invezz

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