The EU intends to launch an official investigation into the Chinese retailer Shein over numerous alleged violations of European law, including the sale of child-mimicking sex dolls and weapons, UNN reports with reference to The Guardian.
Details
The European Commission said on Tuesday it had launched an investigation after making a request to the fast-growing company last year.
A senior EU official also pointed to reports of the sale of clothing, cosmetics and electronic goods that do not comply with EU law.
The investigation will examine three aspects of Shein's service that have raised concerns.
In addition to the sale of illegal goods, it will also consider the "addictive design of the service provided by Shein," an EU official said, "including bonus point programs, gamification, and rewards, "which may pose a risk to users' mental health."
The investigation will also examine Shein's recommendation systems, which can overwhelm users with product offers to buy.
"We have a suspicion that Shein's system is not designed to prevent the sale of illegal goods," the official said on Tuesday. "Illegal goods? There are still a lot of them there, so something is probably not working."
This is the second investigation launched into the addictive design of an online retail platform, following an investigation launched into Temu in late 2024.
The EU also stated that Shein's recommendation systems are opaque and may not comply with the transparency requirements of the EU Digital Services Act (DSA).
Under the rules, a recommendation system must "provide one accessible alternative not based on profiling." During a preliminary investigation, the EU found that Shein only "in very general terms" explained how its recommendation system works."
Shein stated that it takes its obligations under the DSA seriously and has always fully cooperated with the European Commission and Coimisiún na Meán – the Irish regulator that will lead the investigation – and will continue to do so. The company added that it has taken steps to limit the damage.
"In recent months, we have continued to invest significantly in measures to strengthen compliance with the Digital Services Act (DSA). These include comprehensive systemic risk assessments and mitigation systems, enhanced protection for minor users, and ongoing work to build our services in a way that ensures a safe and reliable user experience," Shein said.
Addendum
The European investigation into Shein began several months after the French government backed down from an attempt to completely suspend Shein's services for three months after illegal goods were found on the site.
The French investigation examines the legality of goods, not the systemic approach of the trading platform.
At a hearing in a Paris court in December, a state lawyer said Shein should implement control mechanisms on its website, including age verification and filtering, to ensure that minors cannot access pornographic content.
In November, the French government threatened to suspend Shein amid a scandal involving the sale of child-mimicking sex dolls.
The announcement came as Shein opened its first physical store in Paris, with a large police presence.
EU officials said the investigation was completely separate from investigations in France and other assessments being carried out by consumer protection authorities regarding goods that violate national trading standards rules.
"What happened in France is only part of the puzzle, but we are looking at the system as a whole. We are not just focusing on what happened in France," a senior official said.
The EU first requested information on whether the platform complies or does not comply with the Trading Standards Act (DSA) in April 2024. It has now concluded that Shein considers its services to be at low risk of violating EU law. However, the EU argues that Shein is at "high risk" of selling goods that violate EU laws.
Last year, EU Justice Commissioner Michael McGrath said he was "shocked" by the toxicity and danger of some products on Shein.
He said consumer protection agencies had found baby pacifiers that could cause choking, clothing with chemicals banned in the EU, and items such as children's sweatpants with drawstrings long enough to pose a tripping hazard.
The EU said Shein is cooperating with the European Commission, and the new investigation does not mean the service will ultimately be banned, but blocking its sales in Europe remains a "last resort" if the company does not comply with EU laws.