Shein, a popular Chinese fast-fashion online retailer, has been placed under fire recently for their exploitative business practices. It has rightfully raised alarms about reported labor abuses and deceptive advertising practices. Recently, the European Union (EU) took action on this by declaring Shein broke EU consumer law. The space for improvement The company has until the end of October to formally respond to these findings. If Shein is found not to be in compliance, it could be subject to serious penalties calculated according to its level of sales across EU member countries.
The Shein controversy reached a boiling point with UK Members of Parliament (MPs) directing strong criticism towards the company. They alleged that Shein showed sufficient ‘wilful ignorance’ within its sourcing practices. Perhaps most striking, Shein’s lawyers declined to respond when asked which country the company imports cotton from. Yet, this lack of transparency begs the question of how labor conditions within its supply chain are being monitored and enforced.
A January investigation from the BBC broke incredible news about Shein. Some employees are even clocking in upwards of 75 hours a week, which blatantly breaks Chinese labor law. The EU has recently underscored these labor concerns in its anti-dumping investigation of Shein’s business model. They allege the company’s been employing phony markdowns and high-pressure sales strategies.
European Union Justice Commissioner Michael McGrath added that ensuring accountability for e-commerce platforms was key. This decision allows for just that. He continued, “All companies that want to do business with EU consumers need to abide by our requirements. Today’s action sends a clear message: we will not shy away from holding e-commerce platforms to account, regardless of where they are based.” McGrath further remarked that it is now up to Shein to “step up, respect the rules and bring its practices fully in line with EU consumer standards.”
When called out on the allegations, a Shein spokesperson reiterated that Shein is doing what all companies should do. They are committed to treating all workers in their supply chain fairly and with dignity. The spokesperson added, “Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience.” For starters, Shein should pledge to meet or exceed international best practices for standard employee wage pay. They hold all of their supply chain partners accountable to a code of conduct.
The EU’s findings assert that Shein’s marketing practices have not been “presented to consumers in a misleading manner,” yet they still face scrutiny regarding their validity. Shein’s time is running out with only one month to go. Their action will be eagerly watched by the EU and consumers alike.