EU Investigates Shein Over Alleged Illegal Sales, ‘Addictive’ Platform Design

The European Commission has opened a formal investigation into fast-fashion retailer Shein under the bloc’s sweeping Digital Services Act (DSA), marking the first probe against the company under the new rules.

Announcing the move on Tuesday, the Commission said it was examining allegations that Shein allowed the sale of illegal products on its platform, including items linked to child sexual abuse material.

Regulators will also assess concerns over the transparency of the company’s recommender systems and claims that aspects of its platform design may encourage addictive or harmful user engagement.

The European Commission said, “Addictive features could have a negative impact on users’ wellbeing and consumer protection online.”

An EU official added that regulators suspect Shein may have underestimated those risks in its mandatory assessment and failed to put proportionate measures in place to address them.

Shein faced intensified scrutiny in November after French authorities criticised the platform for listing sex dolls resembling children. The controversy triggered public outrage and prompted further regulatory attention across the European Union.

In response, Shein said it had immediately removed the products in question and introduced a global ban on the sale of sex dolls, regardless of appearance. The company, founded in China in 2012 and now headquartered in Singapore, said it would cooperate fully with the EU investigation.

“We share the Commission’s objective of ensuring a safe and trusted online environment and will continue to engage constructively throughout this process,” Shein said in a statement.

Shein is one of more than 20 platforms designated as “very large online platforms” under the DSA, a classification that subjects companies to stricter oversight. Firms found in breach of the law could face fines of up to six per cent of their global annual turnover, or even temporary suspension from operating in the EU in cases of serious and repeated violations.