European Commission to investigate online retailer Shein

The European Commission has announced an investigation into online retailer Shein. File Photo by Hannibal Hanschke/EPA
Feb. 17 (UPI) — The European Commission announced Tuesday that it has opened formal proceedings against online retailer Shein “for its addictive design, the lack of transparency of recommender systems, as well as the sale of illegal products, including child sexual abuse material.”
The Commission said in a press release it was specifically investigating: the systems Shein has to limit the sale of illegal products in the European Union; risks linked to the addictive design of the service and the systems to mitigate those risks; and transparency of the recommender systems that it uses to propose content and products to users.
Under the Digital Services Act, Shein must disclose the parameters used in its recommender systems and it must provide users with at least one easily accessible option that is not based on profiling for each recommender system, the release said. The EU said it found that Shein only explained its recommender “in a very general manner.”
“In the EU, illegal products are prohibited — whether they are on a store shelf or on an online marketplace,” Henna Virkkunen, executive vice president for Tech Sovereignty, Security and Democracy, in a statement. “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.”
If the investigation finds that Shein has broken EU law, Brussels can impose interim measures, accept binding commitments from Shein or give a non-compliance decision that could lead to large fines, EuroNews reported.
Shein released a statement saying it always “cooperates fully” with the Commission and the Coimisiún na Meán, the Digital Services Coordinator for Ireland involved in the investigation.
“Over the last few months, we have continued to invest significantly in measures to strengthen our compliance with the DSA. These include comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways that promote a safe and trusted user experience,” Shein said in the statement. “Protecting minors and reducing the risk of harmful content and behaviors are central to how we develop and operate our platform. We share the authorities’ objective of ensuring a safe and trusted online environment and will continue to engage constructively.”
The retailer has recently come under fire in France because, in November, it was found to be selling weapons and sex dolls designed to look like young children. Around the same time, Shein opened its first brick-and-mortar shop in Paris to protests for its sale of the dolls and its environmental impact.
Singapore-based Shein issued a statement on Nov. 4 saying it had removed the dolls and permanently banned “all seller accounts linked to illegal or non-compliant sex-doll products.”
A Shein spokesperson said in December that the platform would not reopen in France right away. It was doing an internal audit to find weaknesses in its marketplace operations.

