EU Targets Shein in High-Profile Digital Services Act Investigation
The European Commission has initiated an in-depth investigation into online fashion retailer Shein, focusing on whether the platform has violated key EU rules by allowing the sale of illegal products and using design features that could harm users. Officials said the probe, launched under the bloc’s landmark Digital Services Act (DSA), will examine several aspects of Shein’s operations as concerns grow over consumer safety and platform transparency.
Scrutiny Over Illegal Products and User Safety
At the heart of the EU inquiry is whether Shein’s marketplace failed to prevent the sale of illegal or harmful items in the European Union. Regulators are particularly alarmed by reports that child-like sex dolls — considered illegal under EU standards — were once listed on the platform, alongside other restricted goods. The Commission will assess the systems Shein uses to block these products and protect consumers, especially minors.
The investigation follows earlier national action in France last year, where such listings prompted authorities to threaten suspension of the service and force tighter age-verification measures.
Addictive Design and Recommender System Transparency Under Review
Beyond product listings, EU regulators are examining Shein’s platform design and automated recommendation tools. The DSA requires large digital services to disclose how their algorithms suggest content and products, and to offer users options not based on profiling. Officials want to know whether features like gamified rewards and engagement incentives could promote excessive use, and whether product suggestions are sufficiently transparent and fair.
If Shein is found to be non-compliant with the Digital Services Act, it could face significant penalties — including fines of up to a percentage of its global revenue — or be ordered to change how it operates in EU markets.
