The European Union has initiated a formal investigation into the online retailer Shein following the discovery of ‘child-like sex dolls’ on the platform by French regulators. The probe aims to evaluate Shein’s mechanisms for preventing the sale of illegal products in line with the EU’s Digital Services Act (DSA). The European Commission will scrutinize the platform’s content recommendation systems for transparency and address concerns around its design features, which include gamified elements that may be considered ‘addictive’ for shoppers.
EU tech chief Henna Virkkunen emphasized that the DSA mandates the prohibition of illegal products, whether offline or online, ensuring consumer safety and wellbeing. Shein could face fines of up to 6 percent of its annual global revenue for DSA violations, potentially amounting to $2.2 billion given its reported 2024 revenue of $37 billion. Shein stated its commitment to enhancing DSA compliance through improved detection tools and measures for age-restricted products.
Source: The Verge