EU Launches Probe Into Shein Over Banned Items and Platform Design Concerns

European Union officials have launched a formal investigation into online retailer Shein, examining whether the company adequately prevents illegal product sales and protects users from potentially addictive platform features. The probe stems from concerns about prohibited items found on the site and questions about the platform's user engagement systems.

European Union officials have launched a comprehensive investigation into popular online retailer Shein, examining allegations that the company fails to adequately prevent the sale of prohibited items and protect consumers from potentially harmful platform design elements.

The European Commission announced Tuesday it has initiated formal proceedings under the Digital Services Act, comprehensive legislation that mandates major online platforms implement enhanced protections for internet users against questionable merchandise.

Should investigators determine Shein violated regulations, the company could face requirements to modify its operations or substantial financial penalties, according to the European Commission.

Investigators are examining whether Shein maintains adequate protective measures to prevent the distribution of products banned within EU borders, including materials constituting child sexual abuse such as “child-like sex dolls,” the commission stated.

The fast-fashion retailer encountered significant scrutiny in France last year when officials discovered prohibited weapons including guns, blades and machetes, along with child-like sex dolls available through its platform. French officials attempted to block access to Shein’s website nationwide, but a court prevented this action and requested the commission pursue an investigation through the Digital Services Act framework.

Commission officials indicated they will also evaluate whether Shein operates systems to address risks associated with what they describe as the platform’s potentially addictive structure, which provides users with points and rewards “for engagement.”

Additionally, regulators are scrutinizing the transparency of Shein’s product recommendation algorithms that suggest additional purchases to shoppers. Officials express concern that the company fails to provide clear explanations to users regarding why specific products appear in their recommendations.

Shein responded that it regards its regulatory responsibilities seriously and will maintain cooperation with commission investigators.

The retailer stated it has made substantial investments in strengthening Digital Services Act compliance. These efforts include “comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways 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,” the company said in a press statement.