China-based online marketplace, Shein faces a potential investigation by the European Union over its compliance with consumer protection laws regarding the sale of illegal products.
The European Commission plans to initiate a coordinated action along with national consumer protection regulators against the fast-fashion marketplace. The probe will be led by four EU member states with any fines to be determined by individual national governments.
The Commission is increasingly utilizing the Consumer Protection Cooperation Network, a mechanism designed to unify national authorities against large online platforms suspected of violating consumer protection rules. Temu and Apple faced similar actions last November.
National regulators in individual EU member states can impose fines on companies found to be in violation.
In a separate development, the Commission is unveiling a new strategy to crack down on e-commerce platforms used to ship unsafe products from China and other non-EU countries. This strategy aims to strengthen the EU's role as a global leader in digital regulation.
