European Union authorities are looking into Shein due to worries that the online store has insufficiently restricted the sale of unlawful items or safeguarded users from the platform's purportedly addictive layout.
On Tuesday, the executive branch of the 27-nation alliance announced that it has initiated a formal inquiry under the comprehensive regulations entitled the Digital Services Act, which mandates that major online platforms implement additional measures to ensure consumer safety against questionable products.
The European Commission indicated that Shein might have to change its practices or face significant fines if it is deemed to be non-compliant after a thorough investigation. One focus of the inquiry is whether Shein maintains adequate protections to combat the distribution of items deemed illegal within the European Union, including those classified as child sexual abuse materials such as "child-like sex dolls."
Last year, the rapid-fashion retailer faced criticism in France when authorities discovered illegal weapons, such as firearms, knives, and machetes, along with child-like sex dolls available for purchase on its site. The French government attempted to block access to the Shein platform in France, but a court intervened, preventing this action and requesting the commission to investigate under the Digital Services Act.
The commission will also assess if Shein has implemented measures to reduce risks associated with what it refers to as the platform's addictive design, which incentivizes users by offering points or rewards for participation.
Additionally, regulatory bodies are scrutinizing the transparency of Shein's recommendation systems that propose additional products to users. There are concerns that the firm fails to adequately inform customers about the reasons for receiving particular product suggestions.
Shein has stated that it is committed to fulfilling its responsibilities and will maintain its cooperation with the commission. The company asserted that it has made substantial investments to enhance its adherence to the DSA.
The efforts include "comprehensive systemic-risk evaluations and mitigation strategies, improved protections for younger audiences, and continuous endeavors to design our services in ways that foster a secure and reliable user environment."
"Safeguarding minors and minimizing exposure to harmful content and conduct are fundamental to how we design and manage our platform," the company expressed in a public statement.
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