Shein is in very BIG TROUBLE. Again. The company has already faced numerous controversies, including stealing designs, underpaying workers, exploiting young designers, selling garments with N*zi symbols, producing items containing toxic chemicals, and allegations of modern slavery and labor law violations.
One particularly disturbing claim involves "help me" messages reportedly found on clothing labels, allegedly left by workers in Shein's factories. Although Shein dismissed these notes as a misunderstanding, they have not fully addressed the claims of worker exploitation.
Despite these issues, Shein continues to thrive. Their app will see another ten thousand new items uploaded by the end of today, and TikTok will feature hundreds of new videos tagged #SheinFashion.
Shein’s supply chain lacks certification by labor standards that ensure worker health, safety, and living wages. Evidence of fair wages in their supply chain is absent. Although Shein claims to use eco-friendly materials and reduce hazardous chemicals, no proof supports these claims.
A recent documentary, Untold: Inside The Shein Machine, reveals even more disturbing details. It offers an undercover look into Shein’s factories, exposing how the company can sell such cheap clothing. The documentary revealed employees are severely overworked and underpaid, earning less than $20 per week. Workers often toil for up to 18 hours a day without breaks because their pay depends on the number of garments they produce, not the hours worked. Mistakes result in penalties of around 75% of their daily wage.
Shein employees are typically given just one day off per month and have been found washing their hair during lunch breaks due to their toxic working environment. Shein claims to comply with China's labor laws, but evidence from the documentary contradicts this. Chinese labor laws mandate a 40-hour workweek, with limited overtime, but the 18-hour workdays shown in the documentary violate both these laws and Shein’s own 2021 Sustainability and Social Impact Report.
In 2021, Shein’s audits revealed that 14% of factories violated working hours, while 27% failed in fire and emergency readiness. A report by Public Eye, a Swiss watchdog group, described Shein’s working conditions in detail, noting the absence of emergency exits in factories, posing a grave fire risk. This is especially alarming given the frequency of factory fires in the region. For example, in 2015, a factory fire in the Philippines killed 72 workers, many of whom were trapped by barred windows.
Shein’s published supplier code of conduct claims to uphold integrity, human rights, and sustainable development, but these guidelines are repeatedly breached, as exposed by undercover reports. Poor labor conditions are only part of Shein’s problems; their environmental claims are equally questionable. Although they market themselves as sustainable, tracing their materials or verifying the origin of their supposedly recycled fabrics is nearly impossible.
Shein also faces serious legal challenges, including a class-action lawsuit accusing the company of copyright infringement. The lawsuit alleges that Shein uses data scraping and electronic monitoring to identify popular designs online, which it then copies and mass-produces. This practice is particularly harmful to small creators, who may not even realize their designs have been stolen until it’s too late.
In July 2023, three Chinese graphic designers sued Shein for copyright infringement, alleging the company used secret algorithms to identify trends and plagiarize designs. The complaint claimed that Shein's history of copyright infringement was so severe it amounted to racketeering, a term typically associated with organized crime.
In December 2023, Shein’s main competitor, Temu, sued Shein for allegedly intimidating suppliers, falsely imprisoning merchants, and stealing business secrets. The lawsuit claimed that Shein forced manufacturers to sign loyalty oaths, threatening severe penalties if they did business with Temu.
Despite mounting controversies and allegations, Shein remains the world’s largest and fastest-growing fashion retailer, with little incentive to change its practices.