Dispute with consumer lawyers: Shein needs to make improvements

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Written By Maya Cantina

Berlin

After receiving a warning from German consumer advocates, the shopping platform Shein has signed a cease and desist letter. A spokesperson for Shein told the German news agency.

“We are working with the Federal Association of Consumer Organizations (vzbv) to address their concerns.” The association confirmed the process. Shein wants to “refrain from misleading practices in Germany” in the future, according to board member Ramona Pop. The provider must improve its website by June 1. The procedure was therefore concluded extrajudicially. In case of repeated violation, the association can demand a fine.

Various points of criticism

Shein was warned for several violations at the end of April. It said the provider led consumers “down a slippery slope and ignored consumer protection rules.” The association criticized, among other things, manipulative designs, complicated complaint channels, hidden contact options, apparently arbitrary discount levels and a lack of information in star ratings. There was also criticism of pop-up windows shown to shoppers saying: “You can get vouchers now! Are you sure you want to go?”

The non-profit organization also accused Shein of violating the Digital Services Act (DSA). The new EU directive provides for strict regulation of content on the internet and sets rules that all providers must adhere to. They are obliged, among other things, to take strict action against illegal content such as hate speech and hate speech. Stricter requirements apply to very large online platforms. Platform operators who violate this may be fined. The EU investigates, among other things, alleged violations of the DSA FacebookInstagram and X (formerly Tweet).

Pop: ‘Companies like Shein make shopping a game’

Shein, considered one of the largest fashion companies in the world, was officially classified as a very large platform by the EU at the end of April. Once designated, the dealer must comply with the strictest provisions of the law within four months. Until then, the rules continue to apply to all medium-sized or smaller providers. Shein was founded in China but has since moved its headquarters to Singapore.

The Chinese shopping portal Temu was also recently warned and subsequently signed a declaration of nuisance. In recent months, retail experts and associations have repeatedly called for stricter measures against online retailers. “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,” says non-profit organization boss Pop.

The deputy general manager of the German Trade Association (HDE), Stephan Tromp, said last week: “Test purchases by our own member companies and figures from the Federal Network Agency show that a large proportion of products purchased on these platforms often do not comply product safety and security comply with local regulations.”


An announcement: This report is part of an automated service of the German Press Agency (dpa), which operates according to strict journalistic rules. It is not edited or controlled by the AZ online editors. Feel free to send questions and comments feedback@az-muenchen.de



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