LONDON — European Union regulators have launched an investigation into Shein, raising concerns that the online retailer may not be sufficiently addressing the sale of illegal products or protecting users from its potentially addictive platform design.
The investigation was formally announced this past Tuesday by the bloc’s executive arm, which is operating under the Digital Services Act—a set of regulations that mandates major online platforms take additional measures to safeguard internet users from questionable products.
If found non-compliant, Shein could be forced to modify its practices or face significant fines, according to the European Commission.
A key focus of the probe is whether Shein has adequate safeguards to prevent the sale of illegal items in the EU, including some that relate to child sexual abuse, like “child-like sex dolls.”
Last year, Shein faced heavy criticism in France when authorities discovered illegal goods on its site, including firearms, knives, and those controversial dolls. The French government attempted to block access to the site in France, but a court halted that move and requested an investigation by the European Commission under the Digital Services Act.
Additionally, the commission will evaluate whether Shein is effectively managing risks associated with its platform’s addictive design, which rewards user engagement.
Regulators are also concerned about the clarity of Shein’s recommendation systems, particularly regarding how well the company communicates the reasons behind product suggestions to consumers.
In response, Shein stated it takes its responsibilities seriously and is committed to cooperating with the investigation. The company claims it has made considerable investments to strengthen compliance with the Digital Services Act, including comprehensive risk assessments, protections for younger users, and ongoing enhancements aimed at fostering a safe user experience.
“Protecting minors and minimizing the risk of harmful content and behaviors are fundamental to our platform development and operation,” Shein said in a statement.
