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Shein accused of using manipulative online tactics in the EU report

Shein is under shooting from groups of European consumers who say that the fashion dealer uses manipulative online tactics to push buyers to buy more. A formal complaint was presented to the European Commission this week by the European Consumer Organization (Beuc) and 21 national guard dogs. They argue that the website and the Shein app rely on “dark reasons” designed to hurry or press on users to make purchases that may not have planned.

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These models include features such as fake timers for the countdown, limited time offers with unclear and pop-up deadlines that claim that the articles are low in stock. The complaint also indicates the design choices that make it difficult for users to give up promotions or leave the payment process without feeling guilty to complete a purchase. An example is the use of the so -called “shameful confirmation” messages, in which the buttons say things like “no thanks, I don’t want to save money”, which implies a poor judgment if the user decreases.

According to Beuc, this type of nudging is not only unpleasant but can be harmful. The group states that tactics like these encourage the purchase of impulses, in particular among the youngest users, and guide excessive consumption. In his opinion, the approach can mislead customers in believing that they are getting business that may not be real or urgent.

Part of the complaint revolves around the use of Gamification by Shein. Functions such as daily access prizes, mini-games and point systems are intended to maintain users involved and return. For example, the “Cuppy Keep” game rewards users who use the app on a regular basis with points and coupons. According to Beuc, this configuration transforms shopping into a daily habit and encourages more frequent purchasing behavior.

The complaint asks the EU regulators to investigate these tactics and ask Shein to provide evidence in support of his statements. If the company cannot demonstrate, for example, that a sale ends really in 10 minutes or that only a few items are left in the warehouse, Beuc says it should stop using such instructions. It also wants greater transparency on how to show prices and promotions to buyers.

In response, Shein said that she is collaborating with consumer authorities and is working to demonstrate that her practices follow the EU’s laws. The company also expressed disappointment for the fact that Beuc refused invitations to satisfy and discuss concerns directly.

This is not the first time that Shein faces rejection in Europe. In May, the European Commission and the regulators of different countries, including France, Belgium and Ireland, warned Shein of the possible violations of the laws on consumers. These included misleading labels of products and false discount offers. Shein was given a deadline to respond to such requests or fines for the risk.

Consumer groups say that this model of behavior indicates a wider problem with the way online retailers structure their websites. Shein is not the only company that uses these techniques, but Beuc claims that its scale and rapid growth make it an example of a high profile. With multiple buyers who buy, especially through app, regulators say that it is time to face the way the platforms moderate user decisions.

The EU is already working on new rules to face these concerns. A draft law known as Digital Earness Act should face the use of dark motifs, marketing influencers and personalized ads. Public consultations are provided for the end of the year, with the aim of making online shopping more transparent and less manipulative.

Shein’s business model has long attracted criticism for something more than its simple online design. Activists and environmental groups have raised questions about its work practices, on the supply chain and on the environmental cost of the sale of enormous volumes of ultra-acap clothing. Beuc claims that the company’s sales tactics are part of that wider system, pushing users towards fast purchases with little time to think about the impact.

While the case advances, puts a new pressure on Shein and EU regulators. Consumer supporters say that it is an opportunity to establish stronger rules for the way digital platforms deal with buyers. For Shein, the complaint is the last sign that its global expansion can have more legal and regulatory control.

See also: because marketing experts are rethinking SEO, the purchase of announcements and the use of data

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Tag: Advertising, customer experience, data, social media

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