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Fast-fashion giant Shein is in hot water with the European Union over claims that it broke consumer protection rules.

On Monday, May 26, EU officials warned that Shein could face large fines if it doesn't fix its practices within one month.

The European Commission, along with consumer protection agencies from Belgium, France, Ireland, and the Netherlands, began investigating Shein in February. They found several problems with how the platform treats shoppers in the EU.

Some of the issues include fake discounts, misleading product labels, and unclear rules about returns and refunds.

For example, the EU said Shein creates false "purchase deadlines" to pressure customers into buying quickly, SCMP said.

It also accused the company of giving shoppers wrong or confusing information about their right to return items or get their money back.

"Shein now has one month to reply to the CPC Network's findings and propose commitments on how they will address the identified consumer law issues," the EU stated.

Shein Faces EU Pressure to Fix Consumer Law Violations

If Shein does not take action, national authorities can step in, and that could include fines based on the company's earnings in EU countries.

Shein could also face more rules under the EU's new Digital Services Act, which holds online companies responsible for how they handle data, content, and customer protection.

Michael McGrath, the EU's lead official for consumer protection, said, "EU consumer protection laws are not optional — they must be applied in all cases."

A Shein spokesperson responded, saying, "We have been working constructively with national consumer authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations."

According to Rappler, in another challenge for the online retailer, the EU is also proposing a new flat handling fee of €2 ($2.27) on each small package entering the bloc.

This move is expected to affect low-cost platforms like Shein and Temu, which ship huge numbers of cheap items to EU shoppers.

Despite the criticism, Shein says its goal is to keep the online shopping experience safe and easy for European buyers. "Our priority remains ensuring that European consumers can have a safe, reliable, and enjoyable online shopping experience," the company said.