EU set to probe Shein over consumer protections
The EU is planning to open a formal investigation into online clothes retailer Shein for not abiding by the bloc's consumer protection rules, two sources said Monday.
The low-cost platform, which was founded in China in 2012 and is now headquartered in Singapore, is suspected by Brussels of not doing enough to prevent the sale of products that do not meet European standards.
If Shein is found guilty it risks being fined.
The European Commission, the EU's regulator, sent a series of questions to the company in June on the issue.
Two sources with knowledge of the case said the commission was set to announce the launch of the formal probe on Wednesday.
Brussels will coordinate the investigations with the Consumer Protection Cooperation Network, which brings together the competent authorities of the bloc's 27 member states.
The commission refused to comment on the expected probe.
But Shein insisted it was committed to "ensuring that European consumers can shop online with complete peace of mind".
"Regulatory compliance is a cornerstone of our strategy, and we have established teams in Europe and around the world that focus on key areas," the company said after Bloomberg first reported on the looming probe.
Shein is not the only online retailer originally from China in the crosshairs of Brussels over similar issues.
The commission in October opened an investigation against Temu, which has sells a vast array of goods at low costs.
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