The European Commission has opened formal proceedings under the Digital Services Act (DSA) against online fashion retailer Shein. Regulators will investigate allegations that the platform’s design encourages addictive use, lacks transparency in its recommender systems, and allows the sale of illegal products, including material that could amount to child sexual abuse and child-like sex dolls.
The Commission says it has launched an in-depth investigation rather than issued findings and cannot yet say how long the probe will take. If Shein is found non-compliant with the DSA, the company could be ordered to change its practices and could face substantial fines.
Investigation focus
– Measures and systems to prevent the sale of illegal products in the EU, including content that may constitute child sexual abuse material and child-like sex dolls.
– Risks linked to alleged addictive design features — for example, reward mechanisms for engagement — and the adequacy of the platform’s steps to mitigate those risks.
– Transparency and user options for recommender systems used to suggest products and content, including disclosure of the main parameters of those systems and providing at least one easily accessible recommendation option that is not based on profiling, as required by the DSA.
Background
The controversy over child-like sex dolls emerged publicly in November during the opening of a Shein store in Paris, prompting protests and calls from the French government for an EU investigation. Shein has also faced criticism for listings of illegal weapons, such as firearms, knives and machetes. France sought to suspend domestic access to Shein’s site, but a court blocked that action and asked the Commission to pursue a DSA investigation.
The Commission said platform design features can adversely affect user wellbeing and online consumer protection. Under the DSA, large online platforms must be transparent about how their recommender systems work and must offer non-profiling alternatives for recommendations.
Jurisdiction and company details
Ireland’s Digital Services Coordinator, Coimisiun na Mean, will be associated with the probe because Shein’s EU base is in the Republic of Ireland — a common location for multinational EU operations. Shein reported global turnover of roughly $38 billion for 2024 and has moved its global headquarters from China to Singapore as part of its international expansion and regulatory positioning.
Edited by: Louis Oelofse