Regulators are currently looking into Shein due to concerns about its alleged failure to prevent the sale of illicit items and safeguard users from what is described as an addictive platform design. The European Union has initiated a formal investigation under the Digital Services Act, which mandates more stringent measures for large online platforms to ensure user protection.
Shein could face the need to adjust its practices or potentially face a substantial fine if found to be non-compliant after a thorough examination, as stated by the European Commission. One key aspect of the inquiry is assessing whether Shein has adequate measures in place to restrict the sale of products prohibited in the EU, such as items classified as child sexual abuse material, including “child-like sex dolls.”
Last year, Shein faced criticism in France when authorities discovered illegal weapons like firearms, knives, and machetes, along with child-like sex dolls being sold on its website. The French government attempted to block access to the Shein site in France, but a court intervened, prompting the commission to investigate under the Digital Services Act of the bloc.
The commission will also evaluate whether Shein has implemented strategies to address concerns related to the platform’s purported addictive design, which involves incentivizing user engagement with points or rewards. Additionally, regulators are scrutinizing the transparency of Shein’s recommendation systems that suggest products to consumers, expressing worries about the lack of clear explanations to users regarding product recommendations.
Shein has affirmed its commitment to fulfilling its responsibilities and collaborating with the commission. The company has emphasized significant investments in enhancing compliance with the Digital Services Act, including conducting comprehensive risk assessments, bolstering protections for younger users, and continuously refining services to prioritize a secure and reliable user experience.
In a press statement, Shein stated, “Protecting minors and reducing the risk of harmful content and behaviors are central to how we develop and operate our platform.”
