Shein’s executive chairman, Donald Tang, told POLITICO that the firm created an “integrity panel” to review what products are uploaded on the platform and launched an internal inquiry.
“We must act quickly to make sure it doesn’t happen again,” he said.
Platform non grata
The latest controversy comes amid a wider questions in France and beyond about Shein’s compliance with European Union rules and legislation. In July, the French watchdog the DGCCRF fined the company €40 million for misleading consumers about prices.
Back in May, the European Commission and consumer protection authorities had also notified the platform of alleged violations of consumer protection law, including fake discounts and misleading sustainability claims. European Justice Commissioner Michael McGrath later said he was determined to crack down on the sale of goods on Temu and Shein that do not comply with EU regulations.
The Commission is keeping a watchful eye on the investigations unfolding in France. The EU executive is tasked with monitoring Shein, Temu and AliExpress under its powerful Digital Services Act, since these are platforms with over 45 million users that carry systemic risks.
On Monday, a Commission spokesperson refused to comment on the investigations in France but said the EU executive was in close contact with French authorities.
The incident also raises questions around how the e-commerce platforms protect minors and use age verification, another key part of the DSA. It’s a topic that is close to the heart of French President Emmanuel Macron, who has been actively calling for stricter age verifications online.
Nicolas Barré and Océane Herrero contributed to this report.
