The European Commission has launched an in-depth investigation into Shein over potential violations of EU legislation.
The analysis will focus on three areas: the sale of illegal products, the platform’s addictive design, and the transparency of its recommendation systems.
Shein, popular for its low prices, faced backlash last autumn after child-like sex dolls were found for sale on its platform. The Commission will now examine the company’s systems to assess how it prevents the sale of such products and other illegal items.
"In the European Union, illegal products are prohibited, whether they are sold in physical stores or online marketplaces," stated Vice-President Henna Virkkunen in a press release. "We will evaluate whether Shein complies with the rules and fulfils its responsibilities," she added.
Shein, originally a Chinese company now headquartered in Singapore, serves 145 million consumers across the EU.
On Tuesday, the Commission referenced a mystery shopping test that examined 27 products intended for children under three years old. None of the toys reviewed met EU standards.
The investigation will also look into the platform’s potentially addictive features, such as rewards and points given to customers for engagement. EU regulations require Shein to implement measures to mitigate risks related to addiction.
The Commission is questioning the transparency of Shein’s recommendation systems, which suggest products and content to users. Shein is obligated to disclose the primary parameters of these systems and provide consumers with at least one option not based on profiling.
This investigation is part of the enforcement of the Digital Services Act (DSA), which mandates major platforms to implement stronger consumer protections.
Shein has been under scrutiny since the summer of 2024, with the Commission requesting information from the company multiple times.
The Commission stated that the investigation will be treated as a priority but did not specify a timeline, as the duration depends partly on Shein’s cooperation.
Persistent violations of the DSA can lead to significant fines, up to 5% of a company’s annual turnover. Thus far, only one fine has been issued under the legislation.
In December last year, the Commission fined Elon Musk’s X platform €120 million for breaching transparency obligations.
