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Shein Just Got Spanked by the EU. Are You Next?

Shein Just Got Spanked by the EU. Are You Next?

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The EU didn’t just come for Shein.

They dropped a 30-day warning and a threat that could cost them 6% of global revenue.

Fake sales. Shady pricing. Dubious safety.

If your brand sells online — you’re not untouchable.

Shein’s mistake? Thinking scale protects you.

Expert Breakdown

1. Natasha Lomas — TechCrunch

Lomas reports that EU regulators accused Shein of violating multiple consumer protection laws, especially by pushing false urgency and unclear pricing. The Digital Services Act is the stick. And Shein’s neck is on the block.

2. Laurel Deppen — Fashion Dive

Deppen says Shein now has to show the EU how its algorithms work. What products it pushes. Why. And how it keeps shoppers safe. Regulators want receipts.

Our Take

Shein’s not the only brand playing fast and loose.

And this is bigger than fashion.

If you run a DTC site, a dropshipping business, or any form of ecomm… you’re next in line.

And no, having “terms and conditions” on your site isn’t enough.

The EU wants transparency. Real pricing. Real safety. Clear recommender systems.

3 Things To Do Before Regulators Knock

  1. Run a Dark Pattern Audit

    Use tools like Deceptive Design Checker or Fathom Analytics to find manipulative UX patterns.

    Kill countdown timers that reset every refresh. Kill “Only 3 left!” lies.
  2. Use a Real Repricing App

    Try Prisync or RepricerExpress to set prices based on data, not fiction.

    Set historical price logs. This proves your discounts are legit.

3. Build a Reg-Ready Product Safety File

Create a single Dropbox/Notion folder with safety docs, supplier info, lab reports.

If a regulator emails you tomorrow, you’re ready in 10 minutes — not sweating bullets.

Written by Karina Martirosyan

By JACK

Jack Nalbandian is the CEO of Hatch Pro Media. The company makes videos and helps wheel and automotive brands grow. Jack works hard to help automotive industry find new customers online. The goal is to make viral videos that people remember. Hatch Pro Media helps brands stand out and do their best.

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by JACK

Last Updated June 8, 2025

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