Brussels, Belgium — The European Commission has launched a formal investigation into the Chinese online retailer Shein, responding to concerns over potential violations of European regulations, including the distribution of childlike sex dolls and other illegal products. This scrutiny follows previous demands for information from the fast-growing fashion platform, emphasizing the need for compliance with EU laws.
The inquiry will primarily focus on three critical areas of Shein’s operations. In addition to examining the sale of prohibited items, authorities will assess the platform’s design features, which have raised alarms for their potentially addictive nature. An EU official highlighted concerns regarding features like gamification and reward systems that might endanger consumers’ mental health by overwhelming them with product recommendations.
EU regulators suspect Shein’s systems may not be adequately structured to prevent the sale of illegal goods. “There are ongoing concerns indicating that a significant number of illicit products may still be available on the site,” the official remarked. This marks the EU’s second examination into the addictive features of an e-commerce platform, following a similar inquiry into Temu initiated in late 2024.
The investigation will also evaluate if Shein’s recommendation algorithms align with the Digital Services Act, which mandates clarity and transparency in digital platforms. Preliminary findings indicated that Shein’s explanations concerning its recommendation system were vague, failing to meet specific transparency standards set by the EU.
Shein stated that it takes its responsibilities under the Digital Services Act seriously and has been fully cooperative with the European Commission and the Irish authority overseeing the investigation. The company emphasized its commitment to enhancing compliance through various initiatives aimed at protecting users, particularly younger ones.
This investigation comes just months after the French government reconsidered its own move to suspend Shein’s services over concerns regarding illegal products. In ongoing French legal proceedings, government lawyers argued that Shein must implement stricter controls on its website, including age verification systems to mitigate minors’ access to inappropriate content.
Despite the investigations in France and elsewhere, EU officials clarified that their inquiry into Shein is independent and more comprehensive in scope. The EU aims to evaluate the overall system rather than focusing solely on isolated incidents.
The Commission’s requests for information about Shein’s adherence to EU regulations began in April 2024, with the EU asserting that Shein’s operations are at a “high risk” of violating European laws, contradicting the company’s claims of a “low risk” environment.
Last year, EU Justice Commissioner Michael McGrath expressed his alarm at the presence of hazardous items associated with Shein, citing findings that included potentially dangerous baby products and clothing hazardous to children. While the EU has acknowledged Shein’s cooperation, they have also cautioned that failure to comply could lead to a ban on the company’s activities within the EU.
Although a Paris court previously identified a “serious harm to public order,” it also noted that the problematic items were not sold consistently. The court has since ordered Shein to avoid selling sexually explicit products without implementing necessary age-verification protocols.