EU Launches Formal Investigation Into Shein Over Illegal Products and Addictive Design
European Union regulators have initiated a formal investigation into the online retail giant Shein, citing significant concerns that the company has failed to adequately restrict the sale of illegal products and protect users from its platform's allegedly addictive design features. The European Commission, the executive arm of the 27-nation bloc, announced the probe on Tuesday, invoking the comprehensive Digital Services Act (DSA).
This landmark legislation mandates that the largest online platforms implement enhanced measures to safeguard internet users from hazardous and illicit goods. Should the in-depth investigation conclude with a non-compliance decision, Shein could face substantial fines or be compelled to modify its operational practices.
Focus on Illegal Products and Child Safety
The commission's investigation will scrutinize whether Shein has established proper safeguards to prevent the sale of products deemed illegal within the EU. A primary concern involves items that constitute child sexual abuse material, specifically including "child-like sex dolls."
This scrutiny follows intense criticism the fast-fashion retailer faced last year in France. French authorities discovered illegal weapons, such as firearms, knives, and machetes, alongside child-like sex dolls available for purchase on Shein's website. The French government subsequently attempted to suspend access to the site within its borders.
However, a court intervened to block that suspension, instead directing the matter to the European Commission for investigation under the DSA framework, highlighting the cross-border nature of digital platform regulation.
Addictive Design and Transparency Concerns
Beyond illegal products, the investigation will assess whether Shein has implemented systems to mitigate risks associated with what regulators describe as the platform's addictive design. This includes features that provide users with points or rewards for engagement, potentially encouraging compulsive usage patterns.
Additionally, regulators are targeting the transparency of Shein's recommendation algorithms. There are concerns that the company does not clearly explain to consumers why specific products are being suggested to them, raising issues about user autonomy and informed choice.
Shein's Response and Compliance Efforts
In response to the investigation, Shein issued a statement affirming that it takes its regulatory obligations seriously and will continue to cooperate fully with the European Commission. The company emphasized its significant investments in strengthening compliance with the DSA.
"We have implemented comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and are engaged in ongoing work to design our services in ways that promote a safe and trusted user experience," the company stated.
Shein further highlighted that protecting minors and reducing the risk of harmful content and behaviors are central to its platform development and operational philosophy. This case represents a critical test of the EU's ability to enforce its digital regulations on major global online marketplaces.
