The fast-fashion giant has one month to satisfy European consumer watchdogs; meanwhile, new U.S. tariffs are squeezing its low-cost business model
Europe’s Consumer Protection Cooperation Network (CPC) formally warned Shein on May 26 that its rock-bottom prices come with rock-top deception. The Chinese retailer must scrap sales gimmicks—false original prices, endless countdown timers, even “special feature” labels that are simply legal requirements—or risk penalties of up to 6 percent of its annual EU turnover.
EU consumer authorities claim Shein’s fake discounts violate fair-pricing rules
Investigators from 21 countries say those “WAS $48, NOW $5!” banners were never anchored to a real $48. The notice also blasts forced sign-ups and low-stock scare tactics that hustle shoppers into frantic checkouts. Not cool, right?
- artificial countdown timers that reset perpetually
- price comparisons with fictitious “original” prices
- “confirm-shaming” copy that guilts browsers into buying
- missing or hard-to-find return and contact details
These practices, branded “systematic violations,” must be fixed by late June or national regulators can hit Shein where it hurts—its wallet.
Greenwashing allegations add environmental pressure to Shein’s already crowded legal docket
Regulators didn’t stop at pricing tricks. They flagged vague “eco” tags on polyester tops and questioned how reviews are ranked, suspecting a positivity filter thicker than a selfie app. Consequently, Shein must explain its sustainability claims or drop them entirely. Who really needs a seventh neon crop top, anyway?
U.S. tariff changes threaten Shein’s low-price model beyond European scrutiny
Trouble isn’t confined to Brussels. Washington axed the de minimis loophole on May 2, meaning every package from China now clears customs with a bill attached. After a brief policy roller-coaster, low-value parcels face a 54 percent tariff or a $100 flat fee. Wondering what happens to that $3 scrunchie? It just got pricier.
| Region | New rule | Deadline / effective date | Potential hit to Shein |
|---|---|---|---|
| European Union | End fake discounts, dark patterns, green claims | Response due late June 2025 | Fines up to 6 % of EU turnover |
| United States | De minimis duty-free entry revoked; 54 % tariff or $100 fee | May 2–14 2025 | Higher landing costs on every package |
Add looming shipping delays and the picture darkens: higher costs, tougher oversight, and lawmakers still probing labor and IP accusations.
Shein built a global empire on speed and banners that scream “limited time.” Now regulators on both sides of the Atlantic are calling time. Can the company pivot to transparent pricing and greener practices, or will the next season’s must-have be a massive compliance bill? Stay tuned.