Cease-and-desist declaration

Shein relents in dispute with consumer protection organizations

Shein was warned at the end of April for several violations.

(Bild: AFP)

Following a warning from German consumer protection organizations, the shopping platform Shein has signed a cease-and-desist declaration. "We are working with the Federation of German Consumer Organizations (vzbv) to address their concerns," said a company spokesperson on Friday. The online retailer Temu had previously caved in.

The vzbv confirmed the process. Shein wants to "refrain from misleading practices in Germany in future", said vzbv board member Ramona Pop. The provider must improve its website by June 1. The proceedings were thus concluded out of court. If an infringement is repeated, the association can demand a penalty.

Consumers "led up the garden path"
Shein was warned at the end of April for several violations. The provider was "leading consumers up the garden path and disregarding consumer protection rules", it said. Among other things, the vzbv criticized manipulative designs, complicated complaint channels, hidden contact options, seemingly arbitrary discount levels and a lack of information in star ratings.

Pop-up windows with the message "You could receive vouchers now! Are you sure you want to go?" that are displayed to shoppers.

EU directive brings stricter requirements
The vzbv also accused Shein of violating the Digital Services Act (DSA). The new EU directive provides for strict regulation of online content and lays down rules that all providers must adhere to. Among other things, they are obliged 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 these requirements can be fined. The EU is investigating Facebook, Instagram and X (formerly Twitter), among others, for suspected violations of the DSA.

Shein, which is 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. Following the designation, the retailer must comply with the strictest provisions of the law within four months. Until then, the rules for all medium-sized or smaller providers will continue to apply.

Temu also warned
The Chinese shopping portal Temu was also recently warned and subsequently signed a cease-and-desist declaration. Retail experts and associations have repeatedly called for stricter action to be taken against online retailers in recent months. "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," said vzbv boss Pop.

The Deputy Managing Director of the German Retail 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 the products purchased on these platforms often do not comply with product safety and local regulations."