When Chinese fast-fashion online retailer Shein opened its first boutique last week in the BHV Marais in central Paris, the launch drew both protesters and a crowd of shoppers. The reaction — particularly sharp in the home of haute couture — reflected a broader ambivalence toward the company.
Shein is often mentioned alongside Temu, an online marketplace that connects manufacturers directly with consumers and sells far more than clothing. Both platforms have faced criticism for counterfeit goods, aggressive marketing, poor working conditions and unsafe products. Yet their low prices and wide selections have proven very popular with many shoppers.
A key factor in their European success has been the EU’s exemption from import duties for parcels valued under €150. The US recently closed a similar loophole for packages under $800, leading to fewer shipments there; the EU is moving to end its low-value exemption too, but the change may not take full effect until 2028.
Both platforms reported strong user numbers in the first half of 2025: Temu averaged about 115 million monthly active users in the EU and Shein about 145 million, roughly 12% growth compared with the prior six months.
Sustainability and waste are major concerns. Most items sold on these platforms ship directly from Chinese manufacturers to consumers in individually packed parcels, often flown in for speed. That inflates emissions, swamps customs and makes returns difficult. Environmental groups point to clothing waste, plastic and cardboard packaging, and air freight emissions as serious problems.
The scale is large. A February report by the European Commission found around 4.6 billion low-value items were imported into the EU in 2024 — double 2023’s figure and more than triple 2022’s. Of the approximately 12 million packages arriving each day, 91% came from China. While not all originate from Temu or Shein, the two account for a substantial share. “Europe is inundated by a tsunami of small parcels coming from China, and it’s not about to stop,” said Agustin Reyna, director general of the Brussels-based European Consumer Organization (BEUC).
Consumer protection is another worry. Regulators and watchdogs have repeatedly flagged unsafe products that don’t meet EU standards. Tests published on October 30 by Germany’s Stiftung Warentest, conducted with partners in Belgium and Denmark, illustrate the risks. Of 162 items bought from manufacturers selling via Temu and Shein — including necklaces, USB chargers and baby toys — 110 failed to comply with EU standards and roughly a quarter were potentially dangerous. Problems included high levels of formaldehyde or heavy metals such as cadmium, and chargers that overheated.
BEUC warns that selling unsafe goods also creates unfair competition: companies that flout EU safety rules can undercut local businesses that must comply.
EU authorities have begun to act. In May, the European Commission notified Shein about practices thought to infringe EU consumer law, citing fake discounts, pressure tactics to complete purchases, misleading information on legal rights, deceptive product labels and greenwashing. In July, the Commission preliminarily found Temu in breach of its Digital Services Act obligations for not doing enough to prevent illegal products on its platform; investigations continue and could result in significant fines.
National authorities are taking steps too. Germany’s antitrust agency opened proceedings in October to investigate whether Temu influences pricing on its German marketplace, including possibly setting final retail prices. Italy fined Shein €1 million in August for misleading environmental claims. France has levied heavier penalties: Shein was fined €40 million in July for misleading discounts and environmental claims, bringing the company’s total French fines this year to €191 million. France is also considering tougher measures against fast-fashion platforms, including an advertising ban, mandatory reporting on environmental impacts and a levy of up to €10 per garment.
Despite fines and regulation, Temu and Shein’s momentum is unlikely to end quickly. “Europe needs to get its act together and make Temu and Shein accountable,” Agustin Reyna said. He argued for clear responsibilities and deterrent consequences when products break EU rules.
To curb the tide, the EU will need ambitious customs reform and stronger market surveillance. But as long as the low-value import exemption remains in place until 2028, companies can continue to exploit the loophole and European consumers are likely to keep shopping.
Edited by: Uwe Hessler
