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European Commission Initiates Investigation into Shein as It Aims for Chinese E-Commerce Regulations.
The Commission has launched a consumer protection investigation into Shein and has introduced a set of measures to uphold EU standards for Chinese online retailers.
On Wednesday, the European Commission announced the initiation of a consumer protection investigation into the Chinese clothing retailer Shein, in partnership with the Consumer Protection Cooperation Network, which consists of consumer protection agencies from all EU member states.
The investigation was prompted by information indicating possible violations of EU consumer protection laws and unfair practices.
Alongside the investigation, the Commission introduced a comprehensive toolbox designed to tackle the challenges posed by Chinese online marketplaces that do not conform to EU standards regarding quality, environmental impact, and fair commercial practices.
This toolbox details the current regulations that come into effect as soon as consumers access a website until the point of purchase, and it suggests new measures, including reforms in customs.
Included in these proposals is the implementation of the Customs Union Reform Package, which aims to eliminate duty exemptions for low-value parcels and establish a decentralized EU Customs Authority to improve coordination among national customs efforts.
The toolbox also advocates for the utilization of artificial intelligence tools for product safety inspections, along with mystery shopping and testing initiatives to identify and recall products, in accordance with the recent General Product Safety Regulations.
Furthermore, the communication urges measures under the Ecodesign for Sustainable Products Regulation and modifications to the Waste Framework Directive to mitigate the environmental impact of low-value product imports.
The Commission stressed the importance of enforcing existing Digital Services Act provisions related to addictive designs, dark patterns, and misleading discounts, as well as the stipulations in the Digital Markets Act concerning unfair commercial practices, while urging enhanced collaboration among agencies of EU member states.
In response, Shein stated that the company is prepared to cooperate with the investigation and is dedicated to improving trust and safety for consumers in Europe.
The Commission plans to evaluate the effects of the new measures within a year and will release a report on the enforcement actions undertaken.
A separate investigation into the Chinese retailer Temu, which began in November, is still in progress, and the EU intends to propose a Digital Fairness Act to fill additional gaps in consumer protection regulations.
The investigation was prompted by information indicating possible violations of EU consumer protection laws and unfair practices.
Alongside the investigation, the Commission introduced a comprehensive toolbox designed to tackle the challenges posed by Chinese online marketplaces that do not conform to EU standards regarding quality, environmental impact, and fair commercial practices.
This toolbox details the current regulations that come into effect as soon as consumers access a website until the point of purchase, and it suggests new measures, including reforms in customs.
Included in these proposals is the implementation of the Customs Union Reform Package, which aims to eliminate duty exemptions for low-value parcels and establish a decentralized EU Customs Authority to improve coordination among national customs efforts.
The toolbox also advocates for the utilization of artificial intelligence tools for product safety inspections, along with mystery shopping and testing initiatives to identify and recall products, in accordance with the recent General Product Safety Regulations.
Furthermore, the communication urges measures under the Ecodesign for Sustainable Products Regulation and modifications to the Waste Framework Directive to mitigate the environmental impact of low-value product imports.
The Commission stressed the importance of enforcing existing Digital Services Act provisions related to addictive designs, dark patterns, and misleading discounts, as well as the stipulations in the Digital Markets Act concerning unfair commercial practices, while urging enhanced collaboration among agencies of EU member states.
In response, Shein stated that the company is prepared to cooperate with the investigation and is dedicated to improving trust and safety for consumers in Europe.
The Commission plans to evaluate the effects of the new measures within a year and will release a report on the enforcement actions undertaken.
A separate investigation into the Chinese retailer Temu, which began in November, is still in progress, and the EU intends to propose a Digital Fairness Act to fill additional gaps in consumer protection regulations.
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