European Union regulators have initiated an investigation into Shein amid concerns regarding the online retailer’s efforts to limit the sale of illegal products and to safeguard users from the platform’s potentially addictive design features. The European Commission announced a formal investigation under the Digital Services Act (DSA) on Tuesday. This comprehensive regulatory framework mandates larger online platforms to implement enhanced measures to protect internet users from questionable products.
Should the investigation determine that Shein has not complied with the necessary regulations, the company may be required to adjust its practices or face substantial fines. One primary focus of the inquiry is to assess whether Shein has established adequate safeguards to prevent the sale of products that are considered illegal within the EU, including items such as “child-like sex dolls,” which are identified as child sexual abuse material.
In the past year, Shein has come under scrutiny in France, where authorities identified illegal items available on its website, including firearms, knives, and child-like sex dolls. Although the French government sought to suspend access to the Shein platform in France, a court intervened, blocking the suspension and ordering the commission to investigate under the DSA.
The commission says it will also determine whether Shein has systems to mitigate risks related to what it says is the platform’s addictive design, which includes giving users points or rewards “for engagement.” And regulators are also targeting the transparency of Shein’s recommendation systems that suggest more products to consumers. They’re concerned that the company doesn’t clearly explain to users why it’s recommending specific products.
Shein said it takes its obligations seriously and will continue to cooperate with the commission. The company said it has invested significantly in strengthening compliance with the DSA. The measures are “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.” “Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform,” the company said in a press statement
This article used information from The Associated Press.
