The legal pressure on fast fashion giant Shein is piling up. In the United States, the ultra-cheap retailer has been hit with a new class action lawsuit after it allegedly sent unsolicited marketing text messages to someone on the Do-Not-Call Registry. Meanwhile in the UK, Shein faces a separate legal battle over tax evasion claims that lawyers believe are worth £5.8 million.
What’s happening in the US?
The latest lawsuit, filed in Indiana, alleges Shein broke federal consumer protection law by spamming a claimant with unsolicited texts. The plaintiff says they had registered their number with the Do Not Call Registry in April, yet received multiple marketing messages in June. Attorneys are seeking damages, claiming an invasion of privacy and nuisance.
What’s happening in the UK?
Closer to home, Shein is being sued over allegations that the company manipulated import declarations to avoid paying VAT on goods shipped into the UK. In other words, tax evasion.
Custom agents who worked with Shein argue that the retailer’s behaviour put them “under pressure and reputational risk”. The case is seeking damages of £5.8 million. Shein has denied the allegations, calling them “completely unfounded.”
Why this matters for UK consumers
Shein has grown into one of the biggest fast-fashion platforms in the world, offering ultra-cheap clothes delivered straight from China. But behind the bargains are potentially serious and mounting concerns – as other cases against Shein cover copyright infringement, misleading advertising, and questionable labour and environmental practices.
If the allegations are found to be true, shoppers could be at risk of:
- Data breaches: Unwanted marketing messages or misuse of personal data.
- Misleading advertising: Overstated sustainability claims could leave shoppers making choices based on false promises.
- Poor quality: Garments that wear out quickly add to waste and force repeat spending.
For UK businesses, unfair practices could mean:
- Lost revenue: Tax evasion allegations suggest Shein may have avoided paying millions in VAT, giving it an artificial advantage over retailers who play by the rules.
- Distorted competition: Smaller UK brands and shops struggle to compete on price if rivals are dodging regulations.
If you want to stand up against poor business practices and help ensure companies operate in fairly, legally, and responsibly, you should:
- Be cautious when giving apps or retailers your personal data
- Challenge marketing messages you didn’t sign up for as they may breach data protection laws
- Choose brands that are transparent about their pricing, taxes, labour conditions, and environmental impact
- Follow regulatory developments. If wrongdoing is confirmed, you may have the option to join a group claim for compensation.
Register your interest
If UK investigations or group claims emerge against Shein, Join the Claim will keep you informed. Register your interest today to be the first to know about your rights and options.
