BRUSSELS —The European Union has issued a stern warning to fast-fashion giant Shein, urging the Chinese e-commerce platform to comply with EU consumer protection laws or risk facing financial penalties.

Shein, known for its rapid growth by delivering low-cost products directly to consumers worldwide, is now under heightened regulatory scrutiny in Europe.

Back in February, the European Commission had already cautioned both Shein and Temu — another China-based online retailer — over the sale of unsafe and potentially hazardous items on their platforms.

In response to the latest developments, a Shein spokesperson said the company is “actively cooperating with national consumer authorities and the EU Commission,” adding that “our priority remains ensuring a safe, reliable, and enjoyable shopping experience for European customers.”

According to an official statement from the Commission, the Consumer Protection Cooperation (CPC) network — comprising national consumer agencies across the EU — has notified Shein of several practices that breach EU consumer laws.

“Shein now has one month to formally respond to the CPC Network’s findings and to submit proposed corrective actions to address the violations identified,” the Commission stated.

Should Shein’s response be deemed inadequate, the CPC may open a formal dialogue with the company. Failure to resolve the issues could prompt national authorities to impose enforcement measures — including financial penalties based on Shein’s annual revenues in the respective EU member states.

In parallel, Shein could also be subject to broader EU digital compliance obligations under the Digital Services Act, which came into force to regulate large online platforms operating within the bloc.

Adding to Shein’s regulatory hurdles, the EU has also proposed a €2 (US$2.27) handling fee on every low-value package entering the EU via e-commerce platforms — a move likely to impact Shein’s cost model.