The EU is launching a formal investigation into Shein, a Chinese retailer, over multiple alleged violations of European law, including the sale of childlike sex dolls and other illegal products. This follows a previous request for information made to Shein last year. The investigation focuses on three main areas: the sale of illegal products, potentially harmful design elements of Shein’s services, such as gamification and reward systems that could impact users’ mental health, and the opacity of its recommender system, which may not comply with the EU’s Digital Services Act (DSA).
EU officials have raised concerns about Shein’s system not adequately preventing illegal sales. This investigation is separate from a French inquiry that has also scrutinized Shein for illegal merchandise and the accessibility of pornographic content to minors. The French government previously threatened to suspend Shein’s operations, which led to calls for better safeguards on the platform.
Shein has stated its commitment to cooperating with the EU and has invested in compliance measures, asserting a low risk of violating EU law, while the EU claims a high risk remains. While regulatory actions could potentially include blocking sales in Europe, the European Commission has stated that such measures would be a last resort. The investigation reflects broader concerns about product safety and transparency in online retail, as well as the need for companies to uphold the DSA requirements.
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