Under Pressure: The EU investigation into Shein’s fake discounts

E-commerce giant Shein may be breaking EU law with fake discounts and other pressure selling tactics.

A European Commission investigation, which is being co-led by Ireland’s Competition and Consumer Protection Commission (CCPC), has accused Shein of misleading customers with fake discounts, false deadlines and deliberately unclear information regarding customer rights to returns or refunds. The company has been given one month to propose and implement corrective measures in response to these allegations.

This newest attempt to make Shein respect consumer law shows that many people are being exploited in online markets where great deals or generous offers often conceal a much darker side: of manipulative marketing tactics that undercut freedom of choice.

Our past article on online shopping and compulsive consumption took a deep dive into various trends and techniques that are changing the way we shop online: from habits that trap us in cycles of endless spending and post-splurge regret, to the digital marketing strategies used to push us into needless purchases.

With this recent spotlight on Shein, we thought we would revisit the sales tactics being used on online shoppers. As well as explaining how these strategies work, we’ll suggest some strategies for resisting the pressures put on you.

Pressure selling refers to manipulative techniques used to exert excessive pressure on potential customers to secure a sale.

Pressure selling used to be associated with door-to-door salesmen who use aggressive persuasion strategies or create a sense of urgency.

In a digital age, pressure selling techniques are translated into online infrastructures that pile on the pressure as you shop online. So while aggressive marketers may not be on your doorstep, they are in your inbox, social media feeds and built into online marketplaces.

Common tactics

E-retailers and online marketplaces have a legal obligation to provide transparent and honest information about the products they sell and consumers’ rights. Yet there are a number of tactics that have been identified at work on Shein’s website and more widely.

Fake Discounts

One of the biggest issues scrutinised by the ongoing investigation into Shein is that of fake discounts. This is where a site or seller pretends to offer better deals by showing price reductions that were not based on actual prior prices. This tactic is highly manipulative — and increasingly common.

When an apparent price reduction isn’t based on a genuine previous price, it’s a deliberate strategy to pressure consumers into making purchases they might not otherwise consider. It exploits psychological triggers, revealing just how susceptible our spending behaviour in online marketplaces can be to manipulation.

Next time you’re tempted by a supposed deal, pause and reflect: are you drawn to the item itself, or are you simply chasing the thrill of a bargain? Recognising this distinction can help you make more intentional, informed choices — and avoid falling for deceptive pricing tricks designed to manipulate your perception of value.

Fake countdowns 

Artificial countdowns make it seem as if an item is running out, the product will only be available for a limited time, or that an offer or discount will soon expire, pushing users to buy quickly. But as this EU investigation into Shein suggests, much of the time these claims are exaggerated or completely false.

Phrases like “This offer ends today” or “Only a few items left in stock” create scarcity panic — a psychological phenomenon that wreaks havoc on our cognition and decision-making. This technique is used widely by companies who know that they can easily create a sense of urgency by claiming that a product or service is in limited supply or available for a limited time.

Whenever you see a flash sale, timers or stock countdowns that show when there are only a few items or seats still available at the price shown, remember that you are being pushed into making an impulsive decision.

Slow down – remember that shops like Shein offer ongoing promotions and sales, so take your time to compare prices before committing to a purchase.

Fake reviews and false advertising

As we have covered before, many companies now rely on an army of people or bots to leave fake reviews that give a false or inflated review of their product. And on social media platforms like TikTok and Instagram, it is particularly easy for influencers to make highly exaggerated claims about a product with little regulation.

Shein has been asked to demonstrate compliance with regulations around product rankings, ratings and reviews, and third-party sellers – which suggests that they may be fabricating product feedback.

As well as fake reviews of products, there is the issue of deceptive product labels that make particular product features look special when, in fact, the relevant feature is required by law. For instance, a product may be advertised as “most loved” or “eco-friendly” without any further evidence being provided to substantiate the claim.

False advertising – including things like green washing – are so common these days that it is up to consumers to learn how to see through it and demand that the supporting facts are given.

To stay wise, check out our tips on how to spot a fake review.

Misleading information about returns and refund rights

Another issue that Shein is being held to account for are misleading claims around how to return an item and receive a refund.

When people believe that they have the option to return an item and receive their money back they have a sense of confidence, and are more likely to purchase something they remain unsure of. If it later turns out that they do not have the right to return that they thought they did, or are unable to get in touch with the seller, they end up out of pocket with a product they don’t want.

In the case of Shein it seems that there may be a lack of transparency about rights to return as well as the contact details, which makes it difficult for consumers to submit complaints or request assistance.

To keep yourself protected, you should always read the fine print before making a decision – and don’t take your right to return and refund as a given.

Are these tactics grounds for a complaint? 

Since Brexit, the main law protecting UK consumers from these kinds of tactics is The Consumer Protection from Unfair Trading Regulations. This protects you from unfair practices and bans misleading and aggressive sales tactics. There is an updated version of this guidance from 2014 on the government website: ‘Misleading and Aggressive Commercial Practices Guidance’.

According to this legislation, if you feel you were unfairly pressured into buying a product or service you didn’t want, you have the legal right to a refund. As stated by Citizens Advice, the same goes if you feel that you were misled about the product or service you bought.

However, in digital markets there is still very little regulation of marketing strategies and tactics. Even if you have been mis-led or pressured, it can be tricky to prove this and get a resolution from the company.

We would always encourage consumers to stand up for themselves and fight these manipulative tactics. However, we also know that it is best for consumers to try and avoid succumbing to the pressures of manipulative marketing in the first place.

If you have experienced some manipulative sales tactics it’s a good idea to report an aggressive or misleading seller to Trading Standards. They may not be able to resolve your case but they can stop the trader from acting unfairly in the future and taking advantage of other people.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.

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