BRUSSELS (Reuters) – The European Commission urged the Chinese group Shein on Monday to comply with European Union law (EU) in terms of consumer protection, threatening the low -cost fashion giant of a fine after a report of the Cooperation Cooperation Network (CPC).

The network of national consumer protection authorities and the European Commission have notified Shein a certain number of practices on its platform which violate EU consumer law, according to a press release.

“If Shein does not respond to the concerns raised by the CPC network, the national authorities can take coercive measures to guarantee compliance,” said the Commission.

“This includes the possibility of inflicting fines on the basis of the annual turnover of Shein in the EU member states concerned,” adds the European executive, which specifies that the Chinese group now has one month to respond to the report’s conclusions and propose commitments.

In February, the European Commission launched an investigation targeting Shein and Temu, another Chinese online business platform, and the compliance of the products sold on their sites.

A spokesperson for the group told Reuters that Shein worked in a “constructive” manner with the authorities “to demonstrate our commitment to respect the EU laws and regulations.

“Our priority remains to guarantee European consumers a safe, reliable and pleasant online shopping experience,” added the spokesperson.

Shein, who moved his headquarters from Nankin to Singapore in 2022 and filed documents with the British competition authority, aims for an IPO in London by the middle of the year.

(Written by Foo Yun Chee and Sudip Kar-Gupta; Augustin Turpin and Noémie Naudin, edited by Kate Entringer)

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