EU Launches Investigation into Shein Over Alleged Illegal Products
Brussels – The European Commission has initiated a formal investigation into the Chinese online retail giant Shein, focusing on concerns over the sale of illegal products and potential consumer protection violations. The move comes after widespread criticism regarding the availability of items like child-like sex dolls, as well as unauthorized weapons and pharmaceuticals, on the platform.
The investigation, based on the Digital Services Act (DSA), will examine whether Shein is doing enough to prevent the distribution of unlawful goods. According to the EU Commission, the company is suspected of neglecting consumer safety. Shein has removed some of the controversial items following the initial outcry, but regulators are seeking a more comprehensive solution.
“We share the Commission’s goal of ensuring a safe and trustworthy online environment, and will continue to constructively participate in this process,” Shein stated, adding that security measures, particularly regarding age-restricted products, have already been improved.
Beyond the sale of illegal products, the EU Commission is as well scrutinizing Shein’s design for potentially addictive practices. Specifically, the investigation will look into the use of points and reward systems designed to encourage increased consumer spending, which authorities argue could negatively impact consumer protection. The transparency of Shein’s product recommendations, driven by algorithms, is also under review. The DSA requires large platforms to disclose key parameters of their algorithms and provide users with access to at least one recommendation system not based on personal data.
The investigation marks the first time the EU’s Digital Services Act has been used against Shein. The DSA aims to hold large internet platforms accountable for removing prohibited content, including sexualized images, hate speech, and illegal goods. This development underscores the EU’s increasing efforts to regulate large online marketplaces and protect consumers from harmful or illegal products.
Shein has pledged full cooperation with the EU Commission throughout the investigation. The company will be asked to provide further information and propose solutions to address the identified concerns.
