The brick-and-mortar shop inside the BHV Marais department store in central Paris caused a stir, and not just because it’s the home of haute couture. This was a love-hate reaction towards the company seen in many other regions.
Super cheap and still duty-free
Shein, which is often placed in the same category as the Teemu online platform, which allows manufacturers to sell more than just fashion directly to consumers, has been criticized for things like counterfeit products, aggressive marketing, poor working conditions, and unsafe products. Despite this, many people are happy with more shopping options and cheaper prices.
Although the two companies are separate and have different business models, the result is often the same: a flood of cheap Chinese goods and the packaging that comes with it.
Apart from being extremely cheap, another factor that worked in the companies’ favor is the EU’s exemption from import duty for packages priced below €150 ($174).
The US had a similar loophole for packages worth less than $800 (€691), but has changed its rules, allowing shipments to decline. The EU is in the final stages of passing a similar rule to close its under-valuation loophole, although it may not come into force until 2028.
In the first half of 2025, Teemu had an average of 115 million monthly active users in the EU and Shein had 145 million, according to their own numbers. For both platforms, this is approximately 12% more than in the last six months.
millions of packages from china
One of the biggest concerns about these Chinese e-commerce platforms is stability. Most of the goods purchased on their platform are shipped directly from manufacturers in China to consumers around the world. These individually packed items are brought in for quick delivery and hassle with customs officials and often cannot be returned.
Environmental groups are concerned about the clothing waste, plastic and cardboard packaging waste caused by cheap fast fashion, as well as the emissions from all the flights carrying goods around the world. And the number is really huge.
Nearly 4.6 billion low-value goods were imported into the EU in 2024, according to a report published in February by the EU’s executive Commission. This number is double that of 2023 and more than three times that of 2022.
Of these 12 million packages per day, 91% are from China. These packages don’t all belong to Teemu or Sheen, but overall they have a larger share of the pie.
“The tsunami of small parcels coming from China has flooded Europe and is not going to stop,” Agustín Reyna, director general of the Brussels-based European Consumer Organization (BEUC), told DW.
Protecting consumers in the EU
In addition to sustainability issues, consumer protection watchdogs and the European Commission have repeatedly warned about unsafe products that do not meet EU standards.
New test results published on October 30 by Stiftung Warentest, an independent organization based in Berlin that specializes in product testing, confirm the fears of many.
The trials, which were conducted with groups in Belgium and Denmark, showed dramatic results. Together, they looked at necklaces, USB chargers and children’s toys.
Of the 162 items purchased from manufacturers selling through Temu and Shein, 110 did not conform to EU standards, and about a quarter were potentially dangerous. Some items contained high levels of formaldehyde or heavy metals such as cadmium. Some USB charges overheat.
The European Consumer Organization believes that violations of safety regulations promote unfair competition as some companies sell products that do not meet European safety standards, while local companies must comply with such regulations.
EU officials are not sitting still
In May, the EU Commission notified Shein of practices on its platform that violate EU consumer law. Complaints include counterfeit discounts, pressuring consumers to complete purchases, misleading information about consumers’ legal rights, misleading product labels, and misleading sustainability claims.
In July, the Commission preliminary found that Temu was in breach of its obligations under the Digital Services Act by not taking adequate steps to prevent the sale of illegal products. Further investigation is underway and a heavy fine may be imposed.
EU countries are also not sitting quietly
In October, Germany’s antitrust authority, the Cartel Office, initiated proceedings against Teemu. They want to see whether the platform is influencing pricing on its German online marketplace, including possibly setting the final selling price.
In August, Sheen was fined €1 million by Italy’s competition authority for using misleading environmental claims.
In July, Sheen was fined €40 million by France’s competition agency for misleading discount and environmental claims. This brings the total French fine on the company this year to €191 million.
France has gone a step further and is working on new rules for fast-fashion companies like Teemu and Shein. If approved, it would ban their advertising in France, force them to report on the environmental impacts of their goods and add a levy of up to €10 for each garment purchased.
Bigger fines and more regulations may slow down Chinese e-commerce giants but won’t stop them.
Agustín Reyna said, “Europe needs to act unitedly and hold Temu and Shein accountable.” “We need clear responsibilities and deterrent consequences when the products they sell break our rules.”
To do this, the EU needs ambitious customs reforms and market surveillance. But if the EU allows packages worth less than €150 to go duty-free until 2028, companies will continue to take advantage of the loophole and European customers will likely keep buying.
Edited by: Uwe Hessler
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