European textile manufacturers want to call on the EU Commission to take tougher action against cheap fashion suppliers from China. The Euratex association and several national manufacturers’ associations plan to send a letter to this effect to the EU Commission on Tuesday.
In the paper, which was also made available to the AFP news agency, they call for “emergency measures” against so-called fast fashion.
The European manufacturers accuse the cheaper competition from providers such as Shein and Temu of violating a number of European regulations. According to the associations, this involves “VAT fraud, the infringement of intellectual property rights and misleading claims” that are intended to deceive customers.
The Shein platform was founded in China and is now based in Shanghai. Temu is a US subsidiary of the Chinese PDD Group. Both offer clothing and other products online at extremely low prices. The associations explain in their letter to the EU Commission that they are exerting “unsustainable pressure on European companies”.
Consumer protection investigates
The EU consumer protection authorities are already investigating the two companies following an increase in customer complaints about the poor quality of items or misleading returns information. They are also accusing the companies of deceiving customers with false discounts, for example by using a fictitious starting price as a comparison.
In the case of Temu, the EU Commission also found preliminary violations of European digital laws at the end of July. If the findings are confirmed, the company could face a hefty fine. In their letter, the European associations are now calling on the Commission to “speed up the ongoing investigations and impose the most severe penalties” provided for in the law.
Abolition of the duty-free limit
They are also calling for the swift implementation of a planned reform of European customs policy. The EU Commission wants to abolish an exemption for parcels worth less than 150 euros, which can currently be shipped into the EU duty-free. Without this exemption, customs duties would be payable on the often small orders placed with Shein and Temu.
Brussels is also planning a flat fee of two euros on parcels from countries outside the EU that are sent to private households. However, these proposals have not yet been adopted; the European Parliament and the 27 EU countries still have to negotiate the laws.
Source: https://www.bluewin.ch/