The European Commission has launched a formal investigation into Shein, the rapidly growing Chinese online retailer, focusing on concerns about the platform’s potentially addictive design and the sale of illegal products, including items deemed child sexual abuse material. The probe, initiated under the Digital Services Act (DSA), signals escalating scrutiny of the fast-fashion giant’s practices within the European Union.
The investigation will center on three key areas: the effectiveness of Shein’s safeguards against the sale of illegal products, the risks associated with its platform’s design – specifically, the use of reward systems and gamification – and the transparency of its recommendation algorithms. EU officials expressed suspicion that Shein’s current systems are insufficient to prevent the sale of prohibited goods.
The action follows reports, including one from France’s consumer watchdog in November, detailing the availability of illegal items on Shein’s website. These included “child-like sex dolls,” prompting a commitment from Shein to ban the sale of all such products. The French government had previously sought to suspend access to the Shein site within France, but a court intervened, requesting the Commission investigate under the DSA framework.
The DSA, a sweeping set of regulations for online platforms, requires larger companies to take extra steps to protect users from harmful and illegal content. A non-compliance decision following the in-depth investigation could result in Shein being required to alter its practices or face a substantial fine.
“In the EU, illegal products are prohibited – whether they are on a store shelf or on an online marketplace,” stated Henna Virkkunen, EU Commission Executive Vice-President for Tech Sovereignty, Security and Democracy. “The Digital Services Act keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with. We will assess whether Shein is respecting these rules and their responsibility.”
The Commission’s investigation will specifically examine whether Shein’s recommender systems comply with DSA requirements. Under the DSA, platforms must disclose the main parameters used in their recommendation algorithms and provide users with at least one easily accessible alternative that is not based on profiling.
Beyond the sale of illegal products, the EU is concerned about the potential for Shein’s design to be intentionally addictive. Regulators will assess the risks linked to features such as points or rewards offered for user engagement, examining whether these practices could negatively impact users’ mental wellbeing. This investigation mirrors a similar inquiry launched into Temu in late 2024, highlighting a broader EU focus on the addictive potential of online retail platforms.
Shein, which has its European headquarters in Ireland, will be subject to scrutiny by Irish media regulator Coimisiún na Meán as part of the investigation. The Commission emphasized that the opening of the investigation does not predetermine its outcome.
In a statement, Shein said it takes its obligations under the DSA seriously and has “always cooperated fully” with the European Commission, a commitment it intends to maintain throughout the process. The company highlighted its recent investments in measures to strengthen its DSA compliance, including comprehensive risk assessments, enhanced protections for younger users, and ongoing efforts to design its services in a safe and trusted manner.
Shein also pointed to the rollout of age-assurance solutions across the EU, utilizing third-party technology to balance compliance with both minor protection and privacy requirements. The company stated that protecting minors and reducing the risk of harmful content are “central to how we develop and operate our platform.”
The investigation into Shein comes at a time of increasing global scrutiny of the fast-fashion industry, which has faced criticism for its environmental impact and labor practices. While this investigation focuses on digital safety and compliance with EU regulations, it adds to the mounting pressure on Shein to demonstrate responsible business practices. The outcome of the investigation could set a precedent for other large online marketplaces operating within the EU, potentially leading to stricter regulations and increased oversight of platform content and design.
The Commission will continue to gather evidence, including additional requests for information from Shein and third parties, as well as potential monitoring actions and interviews. The investigation’s timeline remains uncertain, but the EU’s commitment to enforcing the DSA suggests a thorough examination of Shein’s operations is underway.
