The European Commission has initiated formal proceedings against fast-fashion retailer Shein under the Digital Services Act (DSA), marking a significant escalation in regulatory scrutiny of the online marketplace. European regulators are examining whether the platform has adequately prevented the sale of unlawful merchandise and protected consumers from potentially addictive interface designs.
This investigation follows previous enforcement actions in France, where authorities discovered prohibited items including firearms, knives, machetes, and child-like sex dolls available through Shein’s platform. Although French attempts to restrict access to the website were previously blocked by judicial authorities, the matter has now been elevated to EU-level scrutiny.
The probe will specifically assess Shein’s compliance mechanisms regarding three critical areas: prevention of illegal product sales, mitigation of addictive platform features that employ reward systems for user engagement, and transparency of algorithmic recommendation systems that suggest products to consumers without adequate explanation.
Shein faces potential substantial financial penalties or mandatory operational modifications should the investigation conclude with a non-compliance determination. The company has publicly committed to cooperating with regulators, emphasizing substantial investments in DSA compliance measures including enhanced youth protection protocols and comprehensive risk assessment frameworks.