As recently reported by StartUps.co.uk – Chinese fast fashion giant, Shein, has been hit with a consumer watchdog complaint over alleged ‘dark marketing’ and using bad practices to manipulate customer behaviour.
The European Consumer Organisation (BEUC), made up of 25 members across 21 countries, has accused Shein of using “dark marketing” techniques, which it says are designed to pressure shoppers into impulsive purchases.
Emily Sadler, Senior Commercial Solicitor at law firm Harper James, explains what this means for smaller businesses and how they can stay compliant with their marketing tactics:
“Shein’s recent scrutiny has brought renewed attention to so-called ‘dark patterns’ and the design choices that subtly manipulate consumer behaviour. While many of these practices may feel familiar to businesses operating online, the regulatory landscape is shifting rapidly. The European Union’s Digital Services Act already prohibits such tactics, and from April 2025 the UK will introduce strengthened enforcement powers under the Digital Markets, Competition and Consumers Act.
“The Competition and Markets Authority can now directly impose fines of up to 10% of a company’s global turnover for breaches of consumer protection law. This marks a significant change in enforcement capability and should prompt serious reflection for any business engaging with consumers digitally, especially those operating across borders.
“Design features that were once viewed as smart conversion tools (such as countdown timers, pre-ticked boxes, or persuasive language) can now pose legal risk if they mislead users. This is not just a concern for large platforms – smaller businesses may be particularly vulnerable if they unknowingly adopt these elements through third-party plugins or off-the-shelf design templates. An overriding principle of consumer protection law, is that online platforms must ensure that consumers always receive clear, concise, and truthful information.
“For SMEs, this is an important heads up. While larger firms may be able to absorb financial penalties, the same fines could be devastating for smaller operators. It’s important for businesses to review their digital presence, understand the legal implications of design choices, and prioritise genuine user experience over short-term gains. Ethical design is no longer just about regulatory compliance; it’s a core part of building trust, loyalty, and long-term commercial resilience in an evolving digital environment.”