The European Commission has opened a formal investigation into Chinese fast-fashion giant Shein, focusing on potential breaches of the EU’s Digital Services Act (DSA), which governs how large online platforms handle user safety and illegal content.
In a statement on Tuesday, the Commission said the probe will examine three key areas: the sale of illegal products, including child sexual abuse material such as child-like sex dolls; the use of addictive platform features designed to keep users engaged; and a lack of transparency in how the platform recommends products to shoppers. The DSA, which applies to very large online platforms since late 2023, requires firms to assess and mitigate risks associated with their services.
The investigation will scrutinise whether Shein employs features that encourage excessive engagement, such as reward systems offering points or incentives to users, potentially affecting user wellbeing. Regulators will also assess the company’s measures to prevent illegal products from appearing on the platform. Shein came under scrutiny last November after reports highlighted the sale of childlike sex dolls in France.
The probe’s third focus is Shein’s recommendation systems. EU rules mandate that platforms explain the parameters behind content suggestions and provide users at least one option that is not based on profiling. The Commission may request further information, conduct interviews, and implement monitoring measures during its inquiry. If violations are confirmed, Brussels can enforce interim measures, accept binding commitments from the company, or issue non-compliance decisions that could result in substantial fines.
Henna Virkkunen, European Commission executive vice-president for tech sovereignty, security and democracy, said: “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.”
Shein responded to the investigation, saying it takes its obligations under the DSA “seriously” and has “always cooperated fully” with regulators. The company highlighted investments in systemic risk assessments, enhanced protections for younger users, and improvements to age-restricted product safeguards and content detection tools. Shein said protecting minors and reducing harmful content remains central to platform operations.
The investigation comes as Shein faces growing criticism over its European expansion. The company opened its first permanent store in Paris last November at BHV, one of the city’s historic department stores. The launch sparked protests and an online petition that gathered over 120,000 signatures, with child protection and environmental groups voicing concerns.
Founded in 2012 in China and now headquartered in Singapore, Shein has become a global fast-fashion leader, selling mostly Chinese-made clothes and products at low prices. The company has faced longstanding allegations regarding labor practices in its supply chains, particularly in China’s Xinjiang region, where human rights groups report forced labor and abuses against Uyghur and other Muslim minorities.
The EU investigation could result in significant penalties if breaches of the DSA are confirmed, signaling heightened regulatory scrutiny for large tech platforms operating across the bloc.
