Shein, the Chinese fast fashion retailer, is under increasing scrutiny from European regulators concerning its business practices.

As one of the largest online clothing retailers in Europe, with over 108 million monthly users in the European Union, Shein is required to comply with the stringent regulations outlined in the Digital Services Act (DSA) and EU consumer protection legislation.

The pressure is mounting from multiple fronts, including consumer complaints, ongoing investigations, and proposed customs reforms that could significantly affect Shein's operations in Europe.

The latest complaint comes from the pan-European consumer organization BEUC, which has reported Shein to the European Commission for employing so-called "dark patterns"—manipulative tactics designed to encourage users to make impulse purchases.

Examples cited include frequent pop-up notifications warning users that they will miss promotions if they leave the app, countdowns that create a false sense of urgency, and infinite scrolling behavior that overwhelms users and prompts further buying.

There have been reports of individual users receiving as many as twelve notifications in a single day, highlighting the aggressive nature of Shein's marketing methods.

Particularly concerning is the tactic known as "confirm shaming," where users who abandon their shopping carts are confronted with messages such as "Are you sure you want to miss this offer?", which invoke feelings of guilt.

BEUC claims that Shein employs at least eight different types of these patterns, more than any other retailer, including misleading messages about low stock and questionable product ratings.

Additionally, concerns arise in relation to the gamification of shopping experiences, especially among younger users.

For example, a game called Puppy Keep allows users to accumulate points for free products through daily logins and purchases, potentially fostering addiction to the platform.

BEUC has called for an immediate cessation of these practices and demands proof of the authenticity of Shein's products.

The complaint is supported by 25 members of BEUC from 21 countries, including France, Germany, and Spain.

Agustin Reina, Director General of BEUC, noted that fast fashion relies on mass consumption, and these patterns are specifically designed to facilitate that.

In addition to consumer complaints, Shein faces several investigations and regulatory actions within the EU. Some inquiries have concluded, while others remain ongoing.

The European Commission has examined Shein for potential violations of the DSA and requested information in early February regarding measures to prevent illegal content, safeguard personal data, and promote user health and well-being.

Earlier, in June of the previous year, the Commission sought details from Shein about mechanisms for reporting illegal products, protecting minors, and the transparency of recommendation algorithms.

The Consumer Protection Cooperation (CPC) network is also investigating Shein for alleged violations of EU consumer protection laws.

Accusations include false discounts, consumer pressure through deceptive deadlines, and unclear information regarding contracts with third parties.

Shein has until the end of June 2025 to respond to these allegations, with non-compliance potentially resulting in penalties imposed by member states, which, under the DSA, could reach up to 4% of annual revenue.

Following the EU's warnings, Shein announced plans to enhance product safety testing by 2025. The company claimed to have removed over 260 sellers from its platform for non-compliance during 2024, indicating some willingness to adapt to regulations.

However, critics argue that these measures are insufficient and overdue.