4 min. reading

Chinese E-commerce Giants Flunk EU Safety Tests: 95% Fail Rate

The dominance of Chinese e-commerce platforms in European markets has raised serious safety concerns, according to recent investigations. According to European market surveillance authorities, a startling 85–95% of Shein, AliExpress, and Temu products do not adhere to EU safety standards, as reported by Ecommerce News.

Chinese E-commerce Giants Flunk EU Safety Tests: 95% Fail Rate
Source: Depositphotos

Chinese E-commerce Surge

Shein and Temu have been asked by the European Commission to provide explanations of their consumer protection policies, specifically with regard to the safety of children, by July 12, 2024. With Temu reaching 75 million users in the EU and Shein reporting 108 million monthly active users, both platforms have sizable user bases in Europe.

The volume of parcels entering the Netherlands, a key gateway for Chinese e-commerce, has increased exponentially. According to Dutch Customs data, the number of parcels increased dramatically from 172 million in 2021 to 718 million in 2023.

Toxic Growth

A recent check of 144 products from Shein, AliExpress, and Temu found that several products from each company did not meet legal requirements

Most concerning was the discovery that Shein shoes contained phthalates at levels many times above safety limits. In one pair of shoes, they found 229 times more of this harmful chemical than standards allow.

A Seoul environmental health team official gave a detailed explanation of the risks: “Phthalate-based plasticizers affect reproductive functions, such as reducing sperm count, and can cause infertility and even premature birth.” The official further stressed the gravity of the situation, adding that one such chemical “is classified as a human carcinogen by the International Institute for Cancer Research, so special care must be taken to prevent long-term contact with the human body.”

Chinese E-commerce

Source: Depositphotos

EU Takes Action

These platforms’ explosive growth has sparked grave worries. For example, within four months of its debut, Temu was able to overtake Shein in France in terms of market share. Although this expansion is remarkable from a commercial perspective, it has overtaken regulatory agencies working to uphold safety regulations.

The European Consumer Rights Organization, BEUC, formally complained about Temu in May 2024, claiming that the company was using deceptive tactics.

The Digital Services Act (DSA), which now applies to these platforms, requires more stringent security measures for very large online platforms—those with more than 45 million monthly active users in the EU.

To address these issues, Dutch authorities are advocating for a coordinated strategy. They have urged all parties involved, including producers, shipping companies, and governmental organizations, to assume accountability for guaranteeing the safety of their products.

Safety at Stake: EU’s Digital Commerce Faces Critical Test

An important turning point in the European digital economy is indicated by the alarming findings regarding the safety of products from the large Chinese e-commerce companies Shein, AliExpress, and Temu. Because 85–95% of their products do not comply with EU safety regulations, the consequences for consumer protection are dire.

The significant user bases and increasing parcel volumes of these platforms show how quickly they are expanding, underscoring the urgent need for regulatory action.

As European authorities increase their scrutiny under the Digital Services Act, Shein and Temu are facing mounting pressure to demonstrate that they are following stringent safety regulations. When harmful substances, such as the dangerously high levels of phthalates in Shein shoes, are found in their products, there are serious health concerns, particularly for vulnerable groups like children.

The European Consumer Rights Organization’s complaints and ongoing investigations point to a significant shift in e-commerce toward greater accountability. As regulators try to find a balance between consumer convenience and safety, rapid market expansion and the requirement to uphold stringent safety standards clash.

These platforms’ future in Europe will depend on their capacity to adapt to legal requirements without endangering user confidence. Millions of customers rely on reliable and safe products in an increasingly digital world, so the stakes are high for both the participating businesses and the customers.

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