Brussels has launched a formal investigation into Shein, the rapidly expanding Chinese online retailer, over concerns ranging from the sale of illegal products – including reports of childlike sex dolls and weapons – to potentially addictive platform design and a lack of transparency in its recommendation systems. The probe, announced on , marks a significant escalation of scrutiny on the company under the European Union’s Digital Services Act (DSA).
The European Commission’s inquiry will focus on three key areas. First, the investigation will examine the presence of illegal products offered on Shein’s platform. An EU official stated on Tuesday that “there is still a lot [of illegal products] there so something is probably not working,” suggesting a systemic failure to prevent the sale of prohibited goods. This follows previous concerns raised by French authorities, who considered a full suspension of Shein’s services in November 2025 after discovering illegal products, though ultimately backed down from that action.
Second, the Commission will investigate the “addictive design of the service Shein is providing.” This includes examining features like bonus points programs, gamification, and rewards systems, which officials believe “may lead to a risk of users’ mental well being.” This investigation mirrors a similar inquiry launched in late 2024 into Temu, another fast-growing online retailer, highlighting a broader EU concern about manipulative design practices employed by these platforms.
Finally, the investigation will scrutinize Shein’s recommender systems. EU regulators are concerned that these systems are opaque and may not comply with the DSA’s transparency requirements. The DSA mandates that recommender systems provide users with at least one alternative suggestion that is not based on profiling. However, the EU found that Shein only explains how its recommender system works “in a very general manner,” raising questions about its adherence to the law.
The EU’s action comes after it requested information from Shein in April 2024 regarding its compliance with the DSA. Shein had asserted that its services posed a “low risk” of breaching EU law, a claim the Commission disputes, arguing that the platform is, in fact, at “high risk” of selling products that violate EU regulations.
While the investigation is underway, Shein is cooperating with the European Commission. Officials emphasized that a ban on Shein’s sales in Europe remains a “last resort” option, contingent on the company’s willingness to comply with EU laws. The Commission clarified that this investigation is separate from ongoing inquiries in France and other national consumer protection authorities focusing on specific product safety violations.
“What happened in France is a piece of the puzzle but we are looking at the system at large,” a senior EU official explained. “We are not focusing only on what happened in France.” This suggests a broader effort to address systemic issues within Shein’s operations, rather than simply reacting to isolated incidents.
The French investigation, which centered on the legality of products sold on the site, led a Paris court in December to issue an injunction against Shein, prohibiting the sale of “sexual products that could constitute pornographic content” without implementing age-verification measures. The court acknowledged “serious harm to public order” but noted that the sale of such items had been “sporadic,” and that Shein had removed the illegal products.
The timing of the EU investigation coincides with Shein’s recent expansion into physical retail, with the opening of its first brick-and-mortar store in Paris in November 2025, an event that drew a significant police presence. This move into physical retail, while representing a new chapter for the online retailer, has not shielded it from increased regulatory scrutiny.
The EU’s investigation into Shein reflects a growing concern among European regulators about the practices of fast-fashion retailers and the potential risks associated with online platforms. The DSA, which came into effect in February 2024, provides the EU with greater powers to regulate large online platforms and address issues such as illegal content, harmful products, and manipulative design practices. The outcome of this investigation could set a precedent for how the EU regulates other large online retailers and shape the future of e-commerce in Europe.
