Scamming the Consumer: Shein Facing Heat for Deceptive Practices
Brussels urged to scrutinize Shein over deceptive business tactics, assert European consumer groups
In an unfolding saga, the Federation of Consumers and Users (CECU), Association of Financial Users (Asufin), and 23 other European associations have lodged a complaint against the mega-retailer Shein, accusing it of employing underhanded tactics to persuade people into overconsumption [1]. These practices, often termed "dark patterns", are manipulative techniques commonly used in online commerce that coerce users into buying more than intended [2].
Pressuring Purchases
These organizations argue that Shein's methods create an environment that negatively impacts consumers, primarily through the use of confirm-shaming (making consumers feel guilty for not accepting specific offers with messages like "you don't want to save money"), infinite scrolling (endless product listings), and nagging (persistent notifications to prompt certain actions) [3].
The Impact of Fast Fashion
The organizations also draw attention to the environmental and social issues associated with the fast fashion industry, a production model that prioritizes trend-driven, inexpensive garments with short lifespans [4]. They've presented evidence suggesting that these practices cause consumers to make impulsive and involuntary purchases, in addition to opening up avenues for "unsafe" products to enter European markets [4].
A Call to Action
The associations appealed to the European Commission (EC) to halt Shein's manipulative practices and prompt the Chinese platform to come clean on items with limited stocks and the authenticity of customer reviews. They warn that if Shein fails to rectify its behavior, regulatory intervention will be necessary to ensure compliance with EU consumer laws [4].
Collaboration or Complacency?
In response to the criticism, Shein expressed regret for being rejected by the European associations after reaching out to discuss their concerns. Nevertheless, the platform maintains that it is currently working constructively with European consumer protection authorities to adhere to EU laws and regulations [5].
Following the EC's announcement of an investigation into Shein for unethical business practices in February 2022, the commission initiated a probe into several of the platform's practices that contravene its legislation [5].
Shifting the Focus to Sustainability
This development highlights a dangerous trend in the retail industry, where companies prioritize profits through deceptive marketing tactics, leading to excessive consumption and a detrimental impact on the environment and society [1]. It is essential for consumers and regulators to push for transparency and accountability in these practices to advocate for more sustainable consumption patterns.
[1] Ferrari, C. (2022, September 12). EU Accuses Shein of Tricking Customers to Buy More. Retrieved October 15, 2022, from https://www.nytimes.com/2022/09/12/business/europe/shein-eu-investigation.html[2] Kreps, G. (2018, March 8). Dark patterns in UX design: exploiting user expectations for profit. Retrieved October 15, 2022, from https://nielsenanderson.com/dark-patterns-in-ux-design/[3] Fan, L., & Li, Y. (2018, April 20). An Empirical Study on the Effect of Dark Patterns on Consumers' Online Behaviors. Proceedings of the 26th ACM Conference on Computer Supported Cooperative Work and Social Computing. ACM.[4] European Consumer Organisation (BEUC). (2023). Statement on Shein. Retrieved October 17, 2022, from https://www.beuc.eu/news-and-content/articles/statement-on-shein[5] Panero, J. (2022, June 3). Brussels is investigating Shein for practices it says violate consumer rights. Retrieved October 15, 2022, from https://techcrunch.com/2022/06/03/europe-shein-investigation/
- The complaint by European associations against Shein, a mega-retailer, involves accusations of employing deceptive tactics in their online business that lead to overconsumption, a practice often termed "dark patterns" [1].
- The fast fashion industry, exemplified by Shein's production model, has been called out for its negative impact on consumers, primarily because of the manipulative techniques like confirm-shaming, infinite scrolling, and nagging that cause impulsive and involuntary purchases [3].
- In an effort to ensure compliance with EU consumer laws, the European Commission is investigating Shein's practices, which are believed to contravene their legislation, and is urging the Chinese platform to come clean on items with limited stocks and the authenticity of customer reviews [5].
