Is Shein Invincible? Analyzing European Union Regulatory Responses to Ultra-Fast Fashion

By: Yitong Zhang

Edited by: Sophie Leonard and Devon Gura

The online fashion brand Shein has become synonymous with a new form of consumerism, one that promises unlimited choices, low prices, and fast delivery. Shein’s online platforms list a staggering number of items at unbelievable prices, leading to sales at a rate that has moved beyond fast fashion into the realm of “ultra-fast fashion.” [1] Shein’s business model has turned it into the largest fashion retailer worldwide, earning $45 billion each year. [2] However, Shein’s sales also lead to massive amounts of clothing waste, exacerbating the negative environmental impact of the fashion industry. Furthermore, Shein has been accused of numerous forms of business malpractice, including labor practice violations, illegal substances contained in products, and copyright and intellectual property infringement. [3] Despite many issues that have repeatedly been publicly exposed, Shein continues to gain popularity among consumers for its convenience and affordability. [4]

Mitigating these ethical and environmental concerns will require decisive government intervention at the policy level. While the U.S. suffers from a notable lack of regulation affecting e-commerce platforms, the European Union’s (EU) approach is centralized at the supranational level and includes more comprehensive policies that impact Shein’s practices. Recently, the EU adopted the Ecodesign for Sustainable Products Regulation (ESPR), legislation that requires companies to increase their transparency about the environmental impacts of their products and imposes ecodesign requirements on products sold within the Union. [5] The ESPR is expected to take effect in 2026. Additionally, the Digital Services Act (DSA) of 2022 aims to protect EU consumers by regulating and more closely monitoring illegal content in digital spaces. [6] The Act classifies Shein as a Very Large Online Platform (VLOP), subject to the strictest requirements for transparency and public security. [7] These laws could provide a legal framework to restrict the company’s negative impacts. Is it possible for European institutions, using these rigorous standards, to legally restrain Shein and its myriad of ethical, environmental, and labor violations, or has Shein grown so big as to be invincible?

In February 2026 the EU opened an investigation into Shein, alleging violations of the DSA. The press release accompanying this move cites key concerns of the lack of transparency in Shein’s business, as well as the sale of illegal products and “addictive design” of its online platform. [8] The European Commission is currently gathering evidence related to the case. Due to its recent development, it is unclear how the investigations will conclude. While there exists extensive evidence of Shein’s various forms of malpractice, the Commission would have to change EU-wide law that directly affects sales and transactions in order to substantially impact the company.  

Thus far, the European Union has only implemented a relevant policy shift in one instance. In order to insulate European businesses from foreign competition, the EU abolished a regulation that previously allowed small packages under €150 to enter the Union without paying customs duties. [9] Over 4.6 billion small packages entered the EU in 2024, 91% of them originating from China. Most packages shipped from Shein avoided customs fees under this rule, especially given the company’s tendency to divide large orders into smaller individual parcels. The European Council—an EU governing body composed of national ministers from member countries—has agreed to abolish this rule as of November 2025, applying customs duties to all packages that enter EU territory. This move specifically targeted ultra-cheap goods from Chinese e-commerce brands, which the Council framed as unfair competition to European goods. While it marks one step towards curbing the influence of Shein within the EU, the change will likely only come into effect in 2028, and has not affected other regulations surrounding fast fashion. 

EU institutions have failed to demonstrate solid opposition to the controversial fast fashion industry. This year, the Union blocked a French law designed to counter the popularity of fast fashion. The French National Assembly and Senate passed a bill in 2025 that would ban advertisement by fast fashion companies, with the goal of mitigating environmental concerns. [10] The French public have been vocal in their opposition to overseas fast fashion companies, a sentiment that has been aimed at Shein since the company announced the opening of their first physical storefront in Paris. Citizens have organized multiple protests and online petitions opposing Shein’s opening. [11] However, domestic progress towards legalizing restrictions has been stopped by an objection from the European Commission, a European Union institution that holds executive power. 

According to the Commission, the French law contradicts the “country of origin” principle in existing EU regulations. [12] Under this principle, companies can only be subject to restrictions in the member countries that they are established in. Since Shein has headquarters outside of France within other member countries, the domestic law contradicts wider European Union law. The French government is required to modify the bill in response.

The conflict of power illustrates the dissonance between European institutions and the governments they represent. While there are a significant number of EU member countries who have stated their willingness to enact harsher regulations specifically targeting Shein and similar e-commerce companies, the EU government has shown a reluctance to take decisive actions against these actors. [13] The EU has rebuked Shein on multiple occasions but quickly relented after conciliatory measures were taken. For example, the European Commission announced that it would suppress dangerous products imported through Shein in 2023, but the company’s European sales continued to grow throughout 2024 and 2025. [14] Similarly, in 2024 the Commission requested information on Shein’s compliance with the DSA in response to complaints raised by consumer organizations. [15] Commissioners raised the same concerns in the February 2026 investigation of Shein, indicating that the issues were not resolved.

The EU has existing policy frameworks that could target concerns about Shein’s business practices but is not wielding them strategically. EU policy has not yet meaningfully affected the company’s business within its territory, despite significant public opposition to ultra-fast fashion platforms. Individual member states such as France have attempted to pass more stringent regulations, but they remain aware that more significant change must occur at the European level. The EU institutions must take a clear stance against Shein, using regulatory action to build a more sustainable future for global citizens.

NOTES:

1. Shadel, JD. “What Is Ultra Fast Fashion? Investigating Why It’s Ultra Bad.” Good On You, December 1, 2025. https://goodonyou.eco/ultra-fast-fashion/.

2. “Shein Emerges as Biggest Winner in Global Apparel Market Once Again in 2024, Says GlobalData.” GlobalData, March 19, 2025. https://www.globaldata.com/media/retail/shein-emerges-biggest-winner-global-apparel-market-2024-says-globaldata/.

3. The U.S.-China Economic and Security Review Commission, and Nicholas Kaufman. Report, Shein, Temu, and Chinese e-Commerce: Data Risks, Sourcing Violations, and Trade Loopholes § (2023).

4. Daniel Thomas, Lora Jones & Lucy Hooker. “Shein: The Rise and Rise of a Fashion Giant.” BBC News, June 7, 2024. https://www.bbc.com/news/articles/cp991n2v0m2o.

5. Girardier, Christophe. How EU Sustainability Regulations Present Opportunities for U.S. companies, July 8, 2025. https://www.americanbar.org/groups/business_law/resources/business-law-today/2025-july/eu-sustainability-regulations-opportunities-us-companies/.

6. “The Digital Services Act.” Shaping Europe’s digital future. Accessed May 8, 2026. https://digital-strategy.ec.europa.eu/en/policies/digital-services-act.

7. “Commission Designates Shein as Very Large Online Platform under the Digital Services Act.” European Commission, April 26, 2024. European Commission. Commission designates Shein as Very Large Online Platform under the Digital Services Act.

8. “Commission Launches Investigation into Shein under the Digital Services Act.” European Commission, February 17, 2026. European Commission. https://digital-strategy.ec.europa.eu/en/news/commission-designates-shein-very-large-online-platform-under-digital-services-act.

9. “Https://Www.Consilium.Europa.Eu/En/Press/Press-Releases/2026/02/11/Council-Gives-Final-Green-Light-to-New-Customs-Duty-Rules-for-Small-Parcels/.” European council, February 11, 2026. European Council. https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/council-gives-final-green-light-to-new-customs-duty-rules-for-small-parcels/.

10. FRANCE 24. “French Senate Adopts Bill to Regulate Fast Fashion Industry.” France 24, June 10, 2025. https://www.france24.com/en/live-news/20250610-french-senate-to-vote-on-regulating-fast-fashion.

11. Rosman, Rebecca. “Shein Is Opening a Store in Paris. Many French Are Saying ‘Non.’” NPR, October 28, 2025. https://www.npr.org/2025/10/28/nx-s1-5581399/shein-fashion-paris-french-reaction.

12. Chua, Jasmin Malik. “French ‘anti-Fast Fashion’ Law Stalls as Brussels Objects.” Yahoo! Finance, May 4, 2026. https://finance.yahoo.com/economy/policy/articles/french-anti-fast-fashion-law-133400912.html.

13. AFP. “Europe Unites against Ultra-Fast Fashion: Eight Countries Call on Brussels to ‘Strengthen’ Mobilisation.” FashionUnited, December 9, 2025. https://fashionunited.com/news/retail/europe-unites-against-ultra-fast-fashion-eight-countries-call-on-brussels-to-strengthen-mobilisation/2025120969548.

14. “Temu, Shein Targeted as EU Cracks down on Unsafe e-Commerce Imports.” CNBC, February 5, 2025. https://www.cnbc.com/2025/02/05/temu-shein-targeted-as-eu-cracks-down-on-unsafe-e-commerce-imports.html.

15. Chee, Foo Yun. Temu, Shein ordered to provide info on EU Tech rules compliance by July 12, June 28, 2024. https://www.reuters.com/business/retail-consumer/temu-shein-ordered-provide-info-eu-tech-rules-compliance-by-july-12-2024-06-28/.

BILBIOGRAPHY:

AFP. “Europe Unites against Ultra-Fast Fashion: Eight Countries Call on Brussels to ‘Strengthen’ Mobilisation.” FashionUnited, December 9, 2025. https://fashionunited.com/news/retail/europe-unites-against-ultra-fast-fashion-eight-countries-call-on-brussels-to-strengthen-mobilisation/2025120969548.

Chee, Foo Yun. Temu, Shein ordered to provide info on EU Tech rules compliance by July 12, June 28, 2024. https://www.reuters.com/business/retail-consumer/temu-shein-ordered-provide-info-eu-tech-rules-compliance-by-july-12-2024-06-28/.

Chua, Jasmin Malik. “French ‘anti-Fast Fashion’ Law Stalls as Brussels Objects.” Yahoo! Finance, May 4, 2026. https://finance.yahoo.com/economy/policy/articles/french-anti-fast-fashion-law-133400912.html.

“Commission Designates Shein as Very Large Online Platform under the Digital Services Act.” European Commission, April 26, 2024. European Commission. Commission designates Shein as Very Large Online Platform under the Digital Services Act.

“Commission Launches Investigation into Shein under the Digital Services Act.” European commission, February 16, 2026. European Commission. https://ec.europa.eu/commission/presscorner/detail/en/ip_26_420.

“Commission Launches Investigation into Shein under the Digital Services Act.” European Commission, February 17, 2026. European Commission. https://digital-strategy.ec.europa.eu/en/news/commission-designates-shein-very-large-online-platform-under-digital-services-act.

Daniel Thomas, Lora Jones & Lucy Hooker. “Shein: The Rise and Rise of a Fashion Giant.” BBC News, June 7, 2024. https://www.bbc.com/news/articles/cp991n2v0m2o.

“The Digital Services Act.” Shaping Europe’s digital future. Accessed May 8, 2026. https://digital-strategy.ec.europa.eu/en/policies/digital-services-act.

FRANCE 24. “French Senate Adopts Bill to Regulate Fast Fashion Industry.” France 24, June 10, 2025. https://www.france24.com/en/live-news/20250610-french-senate-to-vote-on-regulating-fast-fashion.

Girardier, Christophe. How EU Sustainability Regulations Present Opportunities for U.S. companies, July 8, 2025. https://www.americanbar.org/groups/business_law/resources/business-law-today/2025-july/eu-sustainability-regulations-opportunities-us-companies/.

Henshaw, Kate. “Fast Fashion Giant Shein Is Being Investigated over the Transfer of Customers’ Data to China.” TheJournal.ie, May 5, 2026. https://www.thejournal.ie/shein-data-protectio-investigation-7031578-May2026/.

“Https://Www.Consilium.Europa.Eu/En/Press/Press-Releases/2026/02/11/Council-Gives-Final-Green-Light-to-New-Customs-Duty-Rules-for-Small-Parcels/.” European council, February 11, 2026. European Council. https://www.consilium.europa.eu/en/press/press-releases/2026/02/11/council-gives-final-green-light-to-new-customs-duty-rules-for-small-parcels/.

Rosman, Rebecca. “Shein Is Opening a Store in Paris. Many French Are Saying ‘Non.’” NPR, October 28, 2025. https://www.npr.org/2025/10/28/nx-s1-5581399/shein-fashion-paris-french-reaction.

Shadel, JD. “What Is Ultra Fast Fashion? Investigating Why It’s Ultra Bad.” Good On You, December 1, 2025. https://goodonyou.eco/ultra-fast-fashion/.

Shamsian, Nicolette. “Shein’s Unfashionable IP and Rico Controversies.” Above the Law, September 27, 2023. https://abovethelaw.com/2023/09/sheins-unfashionable-ip-and-rico-controversies/.

“Shein Emerges as Biggest Winner in Global Apparel Market Once Again in 2024, Says GlobalData.” GlobalData, March 19, 2025. https://www.globaldata.com/media/retail/shein-emerges-biggest-winner-global-apparel-market-2024-says-globaldata/.

“Temu, Shein Targeted as EU Cracks down on Unsafe e-Commerce Imports.” CNBC, February 5, 2025. https://www.cnbc.com/2025/02/05/temu-shein-targeted-as-eu-cracks-down-on-unsafe-e-commerce-imports.html.

Theus, Susannah. “U.S. Copyright Law Is Fashionably Late to Regulating IP Compliance in the Fashion Industry.” Louisiana Law Review 85, no. 2 (April 22, 2025): 606–49.

The U.S.-China Economic and Security Review Commission, and Nicholas Kaufman. Report, Shein, Temu, and Chinese e-Commerce: Data Risks, Sourcing Violations, and Trade Loopholes § (2023).