The European Union announced that the Chinese site, which specializes in fashion trading, violates European laws through a series of illegal commercial practices that included providing fake discounts, adopting policies of selling under pressure, and other methods that the Union described as “incompatible with consumer protection standards.”
In an official statement, the European Commission, in cooperation with the Cooperation Network to protect The consumer – which includes the consumer protection authorities in member states – has monitored a number of gaps and serious violations by the Chinese platform, the most prominent of which are:
- Useful or accurate return policies.
- Disturbing allegations of environmental sustainability.
- Justice in providing product information, including price stickers and components.
- Difficulty in communicating with customer service, which limits their ability to inquire or file complaints.
European Union Justice Commissioner Michael McGrath said that it is time to assume “XN”. “The company must take a clear position, to abide by the rules and correct its practices in line with the consumer standards in the European Union.”
The European Commission has granted the company “XN” one month’s deadline to provide a clear plan to address the violations registered under penalty of imposing fines if there is no actual progress.
Belgium, France, Ireland and the Netherlands are participating in monitoring the extent of the platform’s commitment to correcting its path and directly enforcement of the law on its soil.
“Shi In” position
For its part, “Xi” confirmed in a brief statement that it “works constructively with the national consumer authorities and the European Commission,” noting its full commitment to the laws of the European Union, and its willingness to address any observations that the regulators might make.
Previous criticism of the company’s practices
The European Union explained that the investigation revealed multiple behaviors that harm the consumers, including offering unrealistic price discounts that are not based on actual previous prices, and setting false deadlines to pressure customers in order to take the decision to buy quickly, which was considered a form of psychological misinformation.
The Commission called on “XN” to ensure the presentation of the products and reviews of the products in a fair and misleading way, ensuring consumer confidence and the transparency of the market.
She previously faced a large -scale attack due to the working conditions inside its factories. Last January, the BBC revealed that some company employees work for more than 75 hours per week, in an explicit violation of the working laws in China.
The company was also accused by deputies in the British Parliament of “deliberate ignorance” when its lawyers have repeatedly refused to answer questions related to the cotton sources used by the platform to manufacture its products.
In response to these criticisms, “Xi” said that it “is committed to providing fair and generous working conditions in all stages of the supply chain”, stressing that it “invested tens of millions of dollars in enhancing governance and compliance, and setting clear criteria for work wages and workers’ rights.”
The company added, “We obligate all our partners and suppliers to follow a strict behavior code that guarantees compliance with the best humanitarian and commercial practices,” the company added.