Shein faces EU investigation over illegal goods

The European Union has launched a formal investigation into Chinese online retailer Shein over concerns about illegal products and potentially addictive platform design under the Digital Services Act (DSA).

The probe follows pressure from EU member states, including France, which previously urged stronger action over certain prohibited products sold on the platform. Shein has since stopped the sale of such products globally, News.Az reports, citing Reuters.

EU officials said the investigation will examine whether Shein has effective systems in place to prevent illegal goods from being sold and to limit harmful content on its platform.

The probe will also focus on Shein’s platform design, including reward systems that encourage user engagement and could negatively affect user wellbeing. Regulators will review the transparency of Shein’s recommendation algorithms as part of the investigation.

Shein said it will cooperate with EU authorities and has already introduced additional safeguards, including stronger detection tools and age verification systems for restricted products.

Under the Digital Services Act, companies found violating rules could face fines of up to 6% of global annual turnover.

News.Az 

By Aysel Mammadzada