The European Commission has launched an investigation into the Chinese online retailer Shein, suspecting it of violating consumer protection rules in the European Union. At the same time, it plans to tighten control over the import of cheap goods from third countries, particularly from China. To curb the influx of low-cost packages from Chinese e-commerce platforms like Shein and Temu, the EC is proposing a processing fee for such shipments. This measure aims to cover the costs of customs authorities, which are overwhelmed by the massive volume of these deliveries. The announcement comes shortly after the U.S. Postal Service temporarily halted the acceptance of all Chinese parcels.
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The investigation aims to determine whether Shein sufficiently protects customers from unfair contractual terms and deceptive business practices. National consumer protection authorities in EU member states are conducting the review under the supervision of the European Commission.
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A similar inquiry was previously conducted into Shein’s competitor, Temu, which was found to engage in problematic business practices such as fake discounts, manipulative reviews, and incomplete or misleading information about consumer rights. According to European Commission data, approximately 4.6 billion parcels valued at less than 22 euros were delivered to the EU last year. Due to the rapid increase in such shipments, the EC is considering introducing a handling fee for goods delivered to end consumers. A key aspect of the planned reform is also the removal of the current tax exemption for parcels valued at up to 150 euros—an initiative the Commission has been advocating for some time. This change could also impact global online marketplaces like Amazon and Etsy.
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The main objective is to establish a level playing field for all retailers, regardless of their location. Additionally, the EU plans stricter controls and coordinated measures to prevent the sale of hazardous or non-compliant products that fail to meet European standards.
