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European Consumer Groups Escalate Complaint Against Shein Over Misleading Tactics

Introduction

European consumer organisations are putting the spotlight on Shein’s online practices, with 24 groups from 21 countries, including the Cyprus Consumers Association, filing an official complaint with the European Commission. The complaint, submitted on May 30, 2025, comes amid growing concerns over the platform’s use of deceptive interface techniques designed to boost sales.

Misleading Tactics And Regulatory Response

The complaint alleges that Shein employs a host of so-called “dark patterns” such as fake countdown timers, emotionally manipulative tactics, infinite scrolling, and aggressive marketing warnings about limited stock. These methods, critics argue, contravene the European Directive on Unfair Commercial Practices. In February 2025, the European Commission had already initiated an investigation into Shein’s compliance with EU consumer rights legislation. Following this, the Consumer Protection Cooperation (CPC) Network, with oversight from the European Commission and contributions from Belgium, France, Ireland, and the Netherlands, instructed the retailer to align its practices with EU law.

Evidence Backed By Recent Studies

The Cyprus Consumers Association has underscored that their complaint augments existing findings by providing further evidence of these dark patterns. They warn that without corrective actions from Shein, regulatory authorities may be forced to intervene to prevent consumer harm. This sentiment highlights the growing urgency among regulators to enforce adherence to established consumer protection standards.

Product Safety Concerns

In addition to issues with online practices, separate studies have raised serious concerns regarding the safety of Shein products. For instance, Poland’s Federacja Konsumentow reported that over half of 16 tested Shein items contained unsafe levels of heavy metals. Similarly, Belgium’s Testachats/Testaankoop found hazardous chemicals in children’s clothing, with one item exceeding legal safety thresholds. A May 2025 investigation by Denmark’s Forbrugerradet Taenk revealed PFAS chemicals in waterproof jackets from various platforms, prompting Denmark to decide on a ban of PFAS-containing clothing and footwear starting in 2026.

Conclusion

The actions of these consumer organisations, in tandem with the European Commission and the CPC Network, underscore a resolute commitment to safeguarding consumer rights within the EU. As regulatory hurdles increase, the case against Shein serves as a reminder that adherence to consumer protection laws remains pivotal in maintaining market integrity and public trust.

DBRS Warns Of Middle East Risks For Greek And Cypriot Banks’ Key Sector

Rising Geopolitical Risks And Economic Vulnerabilities

DBRS said rising geopolitical tensions in the Middle East increase risks for Greece and Cyprus, citing their exposure to shipping and tourism. The assessment highlights sector dependence as a key vulnerability in both economies.

Impact On Economic Activity And Banking Systems

Despite recent resilience in Cyprus, ongoing volatility is affecting economic activity and the banking sector. The report, titled “Middle East Tensions Heighten Risks for Greek and Cypriot Banks’ Shipping and Tourism Exposures,” compares risks across both countries and identifies areas of exposure.

Tourism And Shipping: The Economic Double-Edged Sword

Tourism and shipping account for a larger share of economic activity in Cyprus and Greece than in most EU countries. In Cyprus, these sectors represent 6.6% of gross value added, compared with 7.3% in Greece and an EU average of 2.9%. Beyond direct activity, tourism supports transport and leisure services, influencing consumption and broader economic output. According to DBRS, banks in both countries have above-average exposure to these sectors, increasing credit risk in the event of a prolonged downturn.

Differentiated Exposure: Cyprus Versus Greece

Exposure differs between the two banking systems. Greek banks hold a larger share of internationally secured shipping loans, while Cypriot banks have greater exposure to tourism-related activity. This makes Cyprus more sensitive to changes in travel demand. Both systems maintain profitability and capital buffers that may support performance under pressure.

Economic Ripple Effects And Sectoral Vulnerabilities

A decline in tourism flows would affect small and medium-sized businesses, household income, and real estate values. These factors are linked to asset quality in Cypriot banks. Early indicators point to higher cancellation rates and weaker travel demand in Cyprus, reflecting its proximity to regional tensions. Greece may see a more limited short-term impact due to lower exposure and potential diversion of tourism demand from affected regions.

Maintaining Profitability In A Challenging Environment

Bank profitability in both countries remained above the EU average as of the fourth quarter of 2025. Capital levels in Cypriot banks remain strong, while Greek banks continue to align with broader European benchmarks. Asset quality has improved, with non-performing loan ratios in transportation and storage close to 0% in 2025, compared with an EU average of 2.3%. In lodging and food services, non-performing loans stood at 2.1% in Greece and 0.7% in Cyprus, both below the EU average of 5%.

Sectoral Exposure And Wider Banking Implications

Data from the European Banking Authority show that transportation and storage accounted for 19.8% of loans to non-financial corporations in Greece and 11.2% in Cyprus in 2025, compared with an EU average of 5.5%. Exposure to lodging and food services reached 11.1% in Greece and 21.2% in Cyprus, exceeding the EU average of 2.6%.

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