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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.

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Charter Reform Commission, L.A. City Council look to impose transparency rules

The Los Angeles City Council voted Tuesday to approve a law aimed at boosting transparency at the Charter Reform Commission, by requiring that members of that panel disclose any private talks they have with the city’s elected officials.

The vote comes about two months before the commission, which began its work in July, is scheduled to finish its deliberations and deliver a list of recommendations to the council.

Councilmember Monica Rodriguez, who proposed the ordinance, said she has been trying since August to pass a measure requiring the disclosure of such private conversations, known as “ex parte” communications. That effort was greeted with “nearly six months of stonewalling,” she said.

“While this is an important victory for oversight and transparency, government accountability shouldn’t be this hard to secure,” she said.

The ordinance, which also applies to communications between commissioners and elected officials’ staff, is expected to go into effect in about a month. Meanwhile, the 13-member Charter Reform Commission approved its own policy a week ago requiring the disclosure of private conversations between its members and city elected officials.

Some government watchdogs say the disclosures are needed to prevent council members and other city elected officials from seeking to dictate the details of the recommendations that are ultimately issued by the commission. The volunteer citizens panel is currently looking at such ideas as increasing the size of the council and potentially changing the duties of citywide elected officials.

“If the public is going to trust the outcomes of our charter reform process, it has to be transparent and credible,” Commissioner Carla Fuentes, who pushed for the new disclosure policy at its Jan. 21 meeting.

The commission has not yet voted on a proposal to also require disclosure of communications with elected officials’ staff.

It is also looking at the idea of adopting ranked choice voting, where voters list all of the candidates in order of preference, and switching the city to a multi-year budget process.

Councilmember Bob Blumenfield raised warnings about the council’s vote on Tuesday, saying charter reform is substantively different from the 2021 redistricting process. Council members should be engaging in conversations with its volunteer commissioners, to help them better understand how the city is run, Blumenfield said.

Those communications will ensure the commissioners make an informed decision what to recommend for the ballot later this year.

“I don’t want this message to be that it’s somehow bad for council members and mayor and elected officials to be engaging in this process,” he said. “To the contrary, I think we need to double down our engagement. We need to speak to those commissioners. They need to learn a lot more about how this city really works for this thing to be effective.”

The commission is scheduled to take up the motion to disclose staffer conversations at its next meeting on Feb. 7.

Rob Quan, an organizer with the group Unrig LA, said he doesn’t want to see a repeat of 2021, when members of the citizens commission on redistricting were regularly contacted by council members’ aides. Those ex parte communications were not disclosed, he said.

“If it didn’t apply to staff, we would simply be reinforcing the power of the staff, which have from day one been the most problematic aspect of this commission,” said Quan, whose group focuses on government oversight.

He and a group of other transparency activists have proposed a total ban on ex parte communication, which hasn’t been considered by the current commission.

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