The European Commission has launched a formal investigation into Shein, the Chinese online retailer, over concerns about the safety of products sold on its platform and the potential for addictive design features. The inquiry, announced Tuesday, follows months of scrutiny and a previous request for information from the company regarding its compliance with the Digital Services Act (DSA).
The Commission will examine three key areas: Shein’s systems for preventing the sale of illegal products, including items such as child-like sex dolls and weapons; the design of its platform, specifically features that may encourage excessive utilize and negatively impact user wellbeing; and the transparency of its recommender systems, which suggest products to users.
“We have a suspicion that the system of Shein is not built to avoid the sale of illegal products,” a senior EU official stated on Tuesday, adding that “illegal products” continue to appear on the site, suggesting existing safeguards are insufficient. The investigation builds on concerns raised in France last year, where authorities discovered illegal weapons, including firearms, knives, and machetes, as well as child-like sex dolls for sale on Shein’s website. While a French court ultimately blocked a proposed three-month suspension of Shein’s services in France, it issued an injunction prohibiting the resumption of sales of “sexual products that could constitute pornographic content” without age verification measures.
The EU’s investigation extends beyond the specific incidents in France, focusing on the systemic approach of the platform. “What happened in France is a piece of the puzzle but we are looking at the system at large,” the EU official said. The Commission’s concerns regarding Shein’s design echo a similar investigation launched in late 2024 into Temu, another online retailer, focusing on potentially addictive platform features.
Under the DSA, online platforms are required to disclose the main parameters used in their recommender systems and provide users with at least one option that is not based on profiling. The EU found Shein’s explanation of its recommender system to be “in a very general manner,” raising questions about its compliance with transparency requirements.
Shein stated it takes its obligations under the DSA seriously and has cooperated fully with the European Commission and Coimisiún na Meán, the Irish regulator leading the investigation. The company added it has taken steps to limit harms, including “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.”
The EU investigation does not automatically mean Shein will be banned from operating in Europe, but a block on sales remains a possibility if the company fails to comply with EU laws. The Commission opened its request for information regarding Shein’s DSA compliance in April 2024, and has now determined that the company’s self-assessment of “low risk” is inaccurate, instead classifying it as “high risk” for selling products that breach EU laws. EU Justice Commissioner Michael McGrath previously expressed shock at the “toxicity and danger” of some products found on Shein, citing examples such as baby soothers posing a choking hazard, clothes containing banned chemicals, and children’s sweatpants with dangerously long waist ties.
