EU probe against Shein advances, violations to be detailed soon, Bloomberg reports

(Reuters) -The European Union will escalate a probe against fast-fashion retailer Shein as early as next week by detailing alleged violations of product safety and other consumer laws that could lead to fines, Bloomberg News reported on Friday, citing people familiar with the matter.

The issuing of the so-called common position by the European Commission and national agencies would be the next step in the European consumer protection probe into the Singapore-based retailer, the report said.

In February, the European Commission said Shein and Temu would be liable for unsafe and dangerous products on their platforms and it would investigate whether Shein violates EU consumer protection rules.

If Shein does not resolve the alleged violations, it could face fines of at least 4% of its annual sales in EU countries, it added.

The EU allegations against Shein were still in draft form and could change before being made public, or face potential delays, Bloomberg said.

Shein and the European Union did not immediately respond to Reuters' requests for comment. Reuters could not immediately verify the details of the report.

Shein has grown rapidly worldwide by shipping inexpensive products directly to consumers and is already under pressure in the EU. The bloc has proposed a 2 euro ($2.27) handling fee per package for low-value e-commerce shipments.

In February, the bloc disclosed plans to remove the duty-free treatment of low-value consignments worth no more than 150 euros, but not until 2028.

EU customs authorities handled some 4.6 billion low-value packages bought online in 2024, 91% of them coming from China and a doubling from 2023.

($1 = 0.8801 euros)

(Reporting by Rhea Rose Abraham and Kanjyik Ghosh in Bengaluru; Editing by Cynthia Osterman)