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EU wants more information from Shein about consumer protection
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Brussels continues to put Shein under pressure: The Asian cheap provider has to provide information about illegal goods and data protection.
The EU Commission demands more information about illegal goods and the recommendation systems on the platform from the Asian shopping portal Shein. The Brussels authority provided a request for information on the basis of the EU Law for Digital Services (Digital Services Act). According to this, Shein should present more information about the measures with which the portal protects consumers. The Commission also calls for details on the protection of the personal data from users.
Brussels sets deadline for answers
According to the information, Shein must provide the required information by February 27. Based on the answers, the Commission will determine the next steps. If a company provides false, incomplete or misleading information or refuses to answer questions, the authority could impose fines.
Shein is a dealer for fashion and sporting goods that was founded in China and is now based in Singapore. It is considered one of the largest fashion companies in the world.
Digital Services Act: Stricter rules for platforms
Among other things, the law on digital services (DSA) should ensure that platforms remove illegal content on their pages faster than before. In turn, users are easier to report such content. Basically, large services have to follow more rules than small ones. If you do not stick to it, there are threatening sensitive punishments – including fines of six percent of the total global annual turnover.
It was only on Wednesday that the EU Commission initiated a separate investigation against Shein to check whether the platform is sufficient against improper contractual terms and unfair business practices. The investigation is carried out by the national consumer protection authorities under the supervision of the Commission.
Shein is very popular in Germany
Online retailers like Shein are very popular in Germany. This is mainly due to the low prices. However, the portals are controversial. Commercial agents, politicians and consumer shooters criticize product quality, lack of controls and unfair competitive conditions. The portals reject the allegations.
dpa
Source: Stern