EC Launches Investigation into Shein

The European Commission has opened a formal investigation into Shein under the Digital Services Act. The EC claims that the platform has an addictive design, lacks transparency of recommender systems, and sells illegal products, including child sexual abuse material.

The investigation will focus on the systems Shein has in place to limit the sale of illegal products in the European Union, including content which could constitute child sexual abuse material, such as child-like sex dolls. It will also look into the risks linked to the addictive design of the service, including giving consumers points or rewards for engagement, as well as the systems Shein has in place to mitigate such risks.

Another prospect of the investigation will be the transparency of the recommender systems that Shein uses to propose content and products to users. Under the DSA, Shein must disclose the main parameters used in its recommender systems, and it must provide users with at least one easily accessible option that is not based on profiling for each recommender system.

The duration of an in-depth investigation depends on several factors, including the complexity of the case, the extent to which the company concerned cooperates with the EC, and the exercise of the rights of defense. Moreover, the opening of formal proceedings does not prejudge its outcome or any other proceedings that the EC may decide to initiate under other articles of the DSA.