The European Union (EU) has opened a formal investigation into fast fashion giant Shein, examining potential breaches of the Digital Services Act (DSA), including the sale of illegal products and concerns over the platform’s design and transparency.
Allegations Under Review
The European Commission (EC), the EU’s executive arm, said it will investigate Shein’s systems for preventing the sale of illegal products, including items that could constitute child sexual abuse material. The probe follows reports last year to French authorities that Shein had sold sex dolls with childlike appearances.
Shein stated it immediately removed the products, banned the sellers, and prohibited the sale of sex dolls globally, regardless of appearance. The company added that it has worked with authorities to investigate both buyers and sellers.
Platform Design and Transparency
The EC also raised concerns about the “addictive design” of Shein’s platform, citing its gamified rewards programme and opaque algorithms. EC spokesperson Thomas Regnier explained that recommender systems, which push products to shoppers based on their data, must comply with the DSA by disclosing their parameters and offering at least one option not based on profiling.
“You don’t know how they’re being designed [and] you’re not in control of what you see,” Regnier said.
Enforcement Powers
Under the DSA, the Commission can impose fines of up to 6% of a company’s global sales if violations are confirmed. Shein reported $38 billion in sales in 2024, underscoring the potential financial impact of enforcement.
Shein’s Response
A spokesperson for Shein said the company has invested heavily in compliance measures, including:
- Comprehensive systemic-risk assessments.
- Enhanced protections for younger users.
- Frameworks to mitigate harmful content.
- Ongoing work to design services that promote a safe and trusted user experience.
“Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform,” Shein said in a statement.
Outlook
The investigation signals the EU’s determination to enforce its landmark Digital Services Act, which aims to hold major online platforms accountable for illegal content, user safety, and algorithmic transparency. For Shein, the probe represents a critical test of its compliance efforts and its ability to maintain trust in one of the world’s largest e-commerce markets.
