Why fast fashion giant Shein is facing an EU probe
What's the story
The European Union (EU) has launched a formal investigation into Chinese fast fashion giant Shein over possible violations of digital law. The probe comes amid allegations of the company's involvement in selling childlike sex dolls and weapons. The European Commission (EC) will examine the measures Shein has in place to prevent the sale of illegal products, including those that could be considered child sexual abuse material.
Platform scrutiny
'Addictive design' of Shein under scanner
The EC will also look into the "addictive design" of Shein's platform and how transparent its product recommendation system is. The commission has previously sent several information requests to Shein, which has been "very cooperative," according to EC spokesperson Thomas Regnier. However, he warned that if a platform appears to pose systemic risks for its users, further investigations could be initiated.
Statement
Protecting minors central to our operations, says Shein
In response to the investigation, a Shein spokesperson said, "Protecting minors and reducing the risk of harmful content and behaviors are central to how we develop and operate our platform." The company also stressed its commitment to compliance with EU laws. Last year, it was reported that Shein was selling "sex dolls with a childlike appearance" on its website.
Company measures
Company banned sellers of childlike sex dolls
After the allegations, Shein immediately removed the products from its platform and banned the sellers. The company also stopped selling sex dolls "regardless of appearance" on its global site. It has since been working with local and international authorities to investigate both buyers and sellers of these childlike sex dolls.
Design concerns
EC concerned about website's 'gamification'
The EC is worried about the "addictive" nature of Shein's website and its "gamification," including a "rewards program" for consumers. While not against reward programs, Regnier said online platform algorithms are often opaque. He added, "You don't know how they're being designed [and] you're not in control of what you see."
Compliance requirements
Shein has to disclose parameters used to recommend products
Under the Digital Services Act (DSA), Shein is required to disclose the main parameters it uses to recommend products. The company must also provide users with "at least one easily accessible option" that is not based on using their data for profiling their likely purchases. A formal investigation allows the EC to take enforcement steps, including fines of up to 6% of a company's global sales.