EU warns Shein of fines in consumer protection probe

BRUSSELS (Reuters) -The European Union on Monday urged fast-fashion retailer Shein to respect EU consumer protection laws and warned it could face fines if it failed to address the EU's concerns.

Shein has grown rapidly by shipping inexpensive products directly to consumers. In February, the European Commission warned Shein and Temu, another Chinese online e-commerce platform, that they would be liable for the sale of unsafe and dangerous products sold on their sites.

Representatives for Shein did not immediately respond to a request from Reuters for comment.

The Consumer Protection Co-operation (CPC) network of national consumer authorities and the European Commission had now notified Shein of practices which infringed EU consumer law, the Commission said in a statement.

"Shein now has one month to reply to the CPC Network's findings and propose commitments on how they will address the identified consumer law issues. Depending on Shein's reply, the CPC Network may enter a dialogue with the company," it said.

"If Shein fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance. This includes the possibility to impose fines based on Shein's annual turnover in the EU Member States concerned," the statement added.

Shein could also be the target of EU regulatory demands under the EU's Digital Services Act.

In a further blow to Shein, the EU has proposed a 2 euro ($2.27) handling fee per package for low-value e-commerce shipments.

(Reporting by Foo Yun Chee and Sudip Kar-Gupta; editing by Philip Blenkinsop and David Evans)