- Former EU Commissioner Günther Oettinger now advises Shein
The discount retailer Shein has secured a former top EU official as an advisor: Long-time EU commissioner Günther Oettinger confirmed to Capital that he is advising the company. "We have an advisory contract with Shein," said Oettinger. Previously, the news agency Bloomberg had reported on the personnel matter. The former CDU functionary emphasized that he is not an employee of Shein. "I am not employed and therefore not a staff member of the company, I am a freelance advisor," Oettinger told Capital.
Shein is planning an IPO in London, but is controversial both here and in the EU and the USA. The company puts local online retailers under pressure with its extremely low prices. Founded in China in 2008 and now based in Singapore, the company is suspected of using cotton from the Chinese forced labor region of the Uighurs for the production of its clothing. Shein has always denied this. In addition, several designers have sued the company, alleging that it has produced counterfeits of their models. There have also been reports of possible trademark infringements, with Levi Strauss and Ralph Lauren among those complaining.
The company has also been criticized for the practice of shipping goods directly from China to foreign customers, thereby avoiding import duties. As a result, the EU now wants to counter this: Brussels is considering imposing an import duty on cheap goods from Shein and Temu and abolishing the current limit of 150 euros for duty-free goods. Asked about possible EU duties, Oettinger said: "Shein is willing to accept the rules in the EU."
Oettinger: "I am not a lobbyist"
Oettinger was Minister President of Baden-Württemberg from 2005 to 2010. In 2010, he moved to Brussels, where he was commissioner for energy affairs, later for digital economy and society, and then for the EU budget and personnel. He was also vice-president of the European Commission for a short time in 2014. He is now, among other things, a member of the supervisory board of the consulting firm Kekst CNC and president of the EBS business university.**
In his work for Shein, Oettinger said, he deals with data protection, cybersecurity and geopolitics. "My consulting activity is limited, on a very small scale and not my main job. It is not a focus of my work," he said. He said he might occasionally fly to Singapore or the USA for this. He carries out his activity where it is desired.**
Oettinger preemptively defended himself against possible interpretations of his new role for Shein: "If it is now claimed that I am lobbying for Shein, that is not true. I am not a lobbyist." Oettinger's company, Oettinger Consulting Wirtschafts- und Politikberatung GmbH, is registered in the German Bundestag's lobby register. "In the standard case, our consulting activity is an internal consultation with leading employees of our clients," it says there in general. "From this internal consultation, there may occasionally be a need for conversation with members of the German Bundestag, with their employees, and with members of the federal government and their employees for the purpose of gathering information and exchanging ideas."**
EU wants to regulate Shein and Temu more strongly
The EU Commission recently demanded more information from online retailers like Shein and Temu about their actions against illegal products and manipulation of consumers. To this end, the Brussels authority submitted an information request at the end of June based on a new EU law on digital services (Digital Services Act). Temu and Shein had to deliver the requested information by July 12. Based on their responses, the Commission wanted to determine the next steps.
In late April, the Federation of German Consumer Organizations (VZBV) accused the online retailer of using manipulative designs on its website to pressure users to make purchases. Moreover, consumer advocates criticized complex complaint procedures and hidden contact options, alleging that Shein repeatedly violated the DSA.
Shein, with Oettinger's advice, might engage in lobbying to navigate potential EU regulations, given the EU's plans to impose import duties on their cheap goods and the scrutiny over their business practices. Oettinger, however, has clarified that he is not a lobbyist, despite his company being registered in the German Bundestag's lobby register.
