Shein may face EU probe, no interim measures: official

Shein, a Chinese online fast-fashion retailer, may face an EU investigation over the sale of illegal products, but a senior European Commission official said an immediate suspension of its website is unlikely.

The company came under scrutiny in November after reports of the sale of childlike sex dolls and other illegal items in France, raising concerns about consumer safety in the EU.

The Commission has requested Shein to provide information on measures taken to address these issues under the Digital Services Act, which mandates large platforms to combat illegal content.

A Commission official indicated that a formal investigation could be launched, similar to recent cases involving Alibaba’s AliExpress and Chinese rival Temu.

Shein’s legal team said the company has taken steps to remove illegal products but acknowledged that bad actors continue to attempt circumvention.

🔗 Source: Reuters

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Implications, context, and why it matters.

Shein faces possible EU investigation; VLOP threshold numbers are missing

Shein’s monthly active user count in the EU has not been given, so it has not been tied to a Very Large Online Platform (VLOP) label under the EU’s Digital Services Act, which adds duties for the biggest platforms with over 45 million monthly users in the EU 1.
An interim measure or ban against Shein is seen as unlikely. A Paris court rejected a French government request to suspend Shein over sex doll sales, and the court said a ban would be disproportionate given steps taken by Shein plus a lack of evidence of systemic non-compliance.
Fines of up to 6% of total global revenue can be imposed for Digital Services Act (DSA) breaches.

EU focus on illegal products raises DSA compliance pressure across marketplaces

EU concern has kept surfacing around illegal products on platforms such as Shein, Alibaba’s AliExpress, and Temu.
The European Commission has used DSA powers to seek details from platforms about risk controls. It sent a request for information to Temu about traders selling illegal products on its marketplace and related risks, including recommender systems and personal data protection 2.
The DSA covers all online services operating in the EU, with requirements scaled to role, size, and impact 1.