Shein will also face stringent rules and audits over how it handles illegal products like counterfeit or dangerous goods starting near the end of August under the bloc’s content-moderation rulebook, the Digital Services Act (DSA). Under the DSA, the European Commission will be able to issue potential fines of up to 6 percent of the company’s global annual revenue.
Faster than whom?
Shein is facing another front over new rules aimed at punishing fast fashion.
French lawmakers in March proposed a bill introducing tougher rules specifically for fast-fashion brands like Shein and rival e-commerce giant Temu. The proposed bill — which has yet to go through France’s higher chamber — includes penalties based on the environmental impact of products and advertising bans for companies considered to be highly polluting.
In Brussels, the ongoing revision of the EU’s waste rules for textiles also includes a proposal to let countries apply higher fees to fashion sellers according to production volumes.
Shein is seen as a key target of these new proposals: It faces ongoing criticism for encouraging over-consumption by offering customers endless choices of new garments at super-low prices. The average price of Shein-labeled items — the platform also sells third-party products online — is about $10, and about 600,000 items are listed for sale at any given time, the BBC reported. Shein can turn around a new item in about 25 days, whereas it can take months for most retailers, the BBC also noted.
And yet, Tang insisted that Shein was not a fast-fashion company. “It is very fast in terms of recognizing trends. Why? Not because we’re smarter, it’s because we listen to you,” he said.