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European Commission Initiates Investigation into Shein While Focusing on Chinese E-Commerce Regulations
The Commission launches an investigation into consumer protection concerning Shein and presents a set of tools to ensure that Chinese online retailers comply with EU standards.
On Wednesday, the European Commission announced it has initiated a consumer protection investigation into the Chinese clothing retailer Shein, working alongside the Consumer Protection Cooperation Network, which unites consumer protection authorities from all EU member nations.
This investigation is prompted by information indicating possible violations of EU consumer protection laws and unfair practices.
Alongside the inquiry, the Commission revealed an extensive toolkit aimed at tackling the issues presented by Chinese online marketplaces that do not comply with EU standards for quality, environmental concerns, and fair commercial practices.
The toolkit delineates existing regulations that come into effect as soon as consumers access a website and proceed to make a purchase, while also suggesting new measures such as customs reforms.
Included in these proposals is the enactment of the Customs Union Reform Package, which seeks to eliminate the duty exemption for low-value shipments and establish a decentralized EU Customs Authority to enhance coordination among national customs activities.
The toolkit further advocates for the implementation of artificial intelligence tools for product safety inspections, as well as mystery shopping and testing initiatives to identify and recall products, aligning with the recent General Product Safety Regulations.
Moreover, the communication urges actions under the Ecodesign for Sustainable Products Regulation and revisions to the Waste Framework Directive to mitigate the environmental effects of low-value product imports.
The Commission highlighted the necessity of enforcing existing Digital Services Act regulations related to addictive designs, dark patterns, and misleading discounts, along with provisions in the Digital Markets Act that tackle unfair commercial practices, while calling for greater cooperation among the agencies of EU member states.
Shein expressed its willingness to cooperate with the investigation and reaffirmed its commitment to improving trust and safety for consumers in Europe.
The Commission plans to evaluate the effectiveness of the new measures within a year and will release a report detailing the enforcement actions taken.
Additionally, a parallel investigation into the Chinese retailer Temu, which began in November, is still in progress, and the EU is preparing to propose a Digital Fairness Act to further address gaps in consumer protection regulations.
This investigation is prompted by information indicating possible violations of EU consumer protection laws and unfair practices.
Alongside the inquiry, the Commission revealed an extensive toolkit aimed at tackling the issues presented by Chinese online marketplaces that do not comply with EU standards for quality, environmental concerns, and fair commercial practices.
The toolkit delineates existing regulations that come into effect as soon as consumers access a website and proceed to make a purchase, while also suggesting new measures such as customs reforms.
Included in these proposals is the enactment of the Customs Union Reform Package, which seeks to eliminate the duty exemption for low-value shipments and establish a decentralized EU Customs Authority to enhance coordination among national customs activities.
The toolkit further advocates for the implementation of artificial intelligence tools for product safety inspections, as well as mystery shopping and testing initiatives to identify and recall products, aligning with the recent General Product Safety Regulations.
Moreover, the communication urges actions under the Ecodesign for Sustainable Products Regulation and revisions to the Waste Framework Directive to mitigate the environmental effects of low-value product imports.
The Commission highlighted the necessity of enforcing existing Digital Services Act regulations related to addictive designs, dark patterns, and misleading discounts, along with provisions in the Digital Markets Act that tackle unfair commercial practices, while calling for greater cooperation among the agencies of EU member states.
Shein expressed its willingness to cooperate with the investigation and reaffirmed its commitment to improving trust and safety for consumers in Europe.
The Commission plans to evaluate the effectiveness of the new measures within a year and will release a report detailing the enforcement actions taken.
Additionally, a parallel investigation into the Chinese retailer Temu, which began in November, is still in progress, and the EU is preparing to propose a Digital Fairness Act to further address gaps in consumer protection regulations.
