In February 2025, Reliance Retail, under the leadership of Isha Ambani– the only daughter of billionaire Mukesh Ambani– brought back Shein to the Indian market after a five-year ban.

In a major setback for Shein, the Chinese fast- fashion giant which was recently reintroduced into the Indian market by Asia’s richest man Mukesh Ambani, and his daughter, Isha Ambani, the European Union (EU) has charged the Chinese firm with gross violations consumer protection laws, and served a 30-day deadline to address these issues.

Shein found violating consumer protection laws in EU

As per EU’s Consumer Protection Cooperation Network, Shein often shows “fake discounts” by displaying price cuts that don’t reflect actual previous prices, according to reports. The regulator also castigated the Chinese fashion brand of employing manipulative tactics like phony purchase deadlines that are designed to pressure customers into buying their products at these “discounted” prices.

Many Shein products were also found to carry deceptive product labels which falsely suggest items have special features when those characteristics are legally required, and misleading sustainability claims that don’t match reality, investigators have revealed.

The firm has also been charged with other violations, including hiding company contact information from customers, incomplete refund policies, and making it difficult for consumers to reach customer service representatives in case of grievances.

EU serves 30-day deadline

Following the allegations, regulators in the EU have served a 30-day deadline to Shein to address these violations or face fines worth up to 6 percent of the company’s global revenue. Shein has been directed to respond to the EU’s findings by late June or face penalties based on its sales in affected member countries.

“We will not shy away from holding e-commerce platforms to account, regardless of where they are based,” EU Justice Commissioner Michael McGrath stated.

Notably, the EU had last year designated Shein as a “very large online platform” under the Digital Services Act, which subjected the firm to stricter rules requiring the removal of illegal goods and content from its platform. Any violations could invite fines up to 6% of its global turnover.

Shein fails to make impact in India

In February 2025, Reliance Retail, under the leadership of Isha Ambani– the only daughter of billionaire Mukesh Ambani– brought back Shein to the Indian market, nearly five years after the Indian government had banned the original Shein app in the country in wake of India-China tensions at the time.

However, Shein’s previous popularity has not translated into current success as the popular Chinese fashion brand has failed to gain any significant traction in India since its return.