EU Targets Platform Practices: What Online Retailers Should Learn from the SHEIN Case

The European Commission is increasing pressure on e-commerce platforms to comply with EU consumer protection rules, with fast fashion retailer SHEIN currently at the center of multiple investigations.

One of the most significant began in February 2025, when the European Commission launched proceedings under the Digital Services Act (DSA), issuing a formal Request for Information (RFI). SHEIN was asked to provide internal documents and detailed information on several key areas, including:

• The risks of illegal content and goods on its platform;
• The transparency of its recommender systems;
• Access to platform data for qualified researchers.

More recently, on 26 May 2025, the European Commission and the Consumer Protection Cooperation (CPC) Network notified SHEIN of several practices that appear to breach EU consumer protection laws and directed the company to make the necessary changes to comply. This enforcement action is taking place in parallel with the DSA investigation, also led by the Commission.

Adding to the regulatory pressure, in June 2025, the European Consumer Organisation (BEUC), supported by 25 national member organisations from 21 countries, filed a formal complaint against SHEIN. The complaint accuses the platform of using dark patterns (manipulative online design features) to encourage overconsumption and limit informed consumer choice.

Regulatory background

Overall, the findings of the European Commission and the CPC Network suggest that several of SHEIN’s practices may breach key EU consumer protection laws, including the Unfair Commercial Practices Directive, the Consumer Rights Directive, the Price Indication Directive and the e-Commerce Directive. The main issues identified include:

• Fake discounts: artificial price cuts based on inflated “prior prices”;
• Pressure selling: using false urgency (e.g. countdown timers) to rush purchasing decisions;
• Misleading consumer information: inadequate or inaccurate data on returns, refunds, and legal rights;
• Deceptive product labeling: implying added value when features are legally required;
• Greenwashing: unsubstantiated or misleading sustainability claims;
• Lack of transparency and contact: consumers reportedly face barriers when attempting to contact SHEIN for complaints or support.

Regulators are also closely examining how product rankings, reviews, and ratings are presented on SHEIN’s platform, to determine whether this information is being manipulated or selectively displayed to influence consumer decisions. In addition, they are reviewing how clearly SHEIN communicates the division of responsibilities between itself and third-party sellers, particularly regarding who is responsible for fulfilling the contract and ensuring that consumer rights are respected.

BEUC’s complaint

BEUC’s complaint urges the Commission and national authorities to take further action against SHEIN and highlights several concerning tactics:

• Confirm-shaming (e.g. guilt-inducing exit messages);
• Infinite scroll and nagging prompts; and
• Unverifiable urgency cues, such as “Only 3 left in stock” or “Flash Sale ends soon.”

Enforcement outlook

The combined regulatory action, by the Commission, CPC Network, and BEUC, places SHEIN under significant scrutiny. If the company fails to respond with effective corrective measures, national enforcement authorities across the EU may impose substantial financial penalties, calculated based on the company’s turnover in the relevant Member States.

What this means for other e-Commerce and marketplace platforms 

The investigations into SHEIN are not isolated, they reflect a broader shift in how the European Commission and national authorities are approaching enforcement in the digital space. The message is clear: compliance extends beyond legal terms and conditions to include the entire consumer experience.

For other e-commerce and marketplace platforms, this means:

• User interface and design choices are under scrutiny. If your platform uses techniques that pressure, mislead, or confuse consumers, such as fake urgency, confirm-shaming, or unclear pricing, you may be at risk of violating EU law. Not all techniques are necessarily unlawful, but a careful legal review is required to determine whether specific practices comply with EU consumer protection rules.

• Transparency is critical. Platforms must clearly explain how product rankings, reviews, and recommendations work, and provide accurate information about sellers, contact information, return rights, and contract responsibilities, especially when third-party sellers are involved. As a marketplace, if you fail to properly disclose who is responsible for fulfilling the contract (whether it’s the platform itself or a third-party seller), you risk being held liable for issues such as delivery failures, defective products, or non-compliance with return and refund rights, even if they were handled by the third-party seller.

• Substantiation is now a requirement. Claims like “only a few left in stock” or “flash sale ending soon” must be based on verifiable data. Unsupported marketing tactics may be considered deceptive.

• Regulatory exposure is increasing. With coordinated actions under both the DSA and consumer protection law, enforcement is becoming more comprehensive, and penalties can be significant. The DSA introduces a wide range of obligations for online platforms, and those that operate in or target the EU, even if they are based outside the EU, must ensure full compliance with its requirements. The rules apply to platforms of all sizes, with stricter obligations for larger players, and cover areas such as content moderation, transparency of recommender systems, advertising disclosures, and user safety.

If your business is based in the EU or targets EU consumers, now is the time to carry out a thorough legal review of your platform. With regulators increasing enforcement against practices that may mislead or pressure consumers, it is essential to ensure that your website is compliant with EU law.

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