Chinese e-commerce giant Shein may face a fine of 150 million euros (175 million dollars) in France for improperly tracking user information online.
The French news agency reported on Thursday (July 10) that the National Commission on Information Technology and Liberties (CNIL) in France accused Shein of using Cookie network trackers to deliver targeted advertisements to users without their consent, which is prohibited in the European Union. At times, Shein also employs a confusing method to obtain users’ consent for network usage.
During an inspection of Shein in 2023, CNIL found that even when users refused to be tracked by Cookies, Shein would still continue to collect user information.
CNIL stated that Shein, having the necessary technology and human resources to comply with regulations, demonstrated negligence in their actions.
The statement concluded by mentioning that Shein has recently come into compliance with the regulations.
The final decision on imposing a fine on this fast-fashion giant is expected to be made within a few weeks.
In a statement sent to the French news agency, Shein described the proposed fine amount as “disproportionate.”
The Chinese company stated: “Since August 2023, we have been actively cooperating with CNIL to ensure compliance and respond to their inquiries.”
Last week, after a year-long investigation, the French Competition and Anti-Fraud Office imposed a record 40 million euro fine on Shein. The organization pointed out that Shein engaged in deceptive commercial practices, including misleading discounts.
According to French consumer laws, merchants must base their discount prices on the lowest price in the past 30 days. However, Shein often ignores previous prices and even raises prices before applying discounts.
Shein entered the French market in 2015 and has experienced rapid sales growth in recent years. However, Shein has also faced criticism for issues such as environmental pollution, low-wage labor, and unfair competition.