Fashion platform Shein faces EU probe
The European Commission has opened an in-depth investigation into online fashion retailer Shein.
It said that Coimisiún na Meán (CnaM) would have a role in the probe as the national Digital Services Coordinator in Ireland, where Shein is established in the EU.
The investigation, under the Digital Services Act, will cover commission concerns about the Chinese platform’s addictive design and the lack of transparency of its recommender systems, as well as the sale of illegal products – including child sexual-abuse material.
It will focus on three areas:
- The systems Shein has in place to limit the sale of illegal products in the EU – including content that could constitute child sexual-abuse material, such as child-like sex dolls,
- The risks linked to the addictive design of the service – including giving consumers points or rewards for engagement – and the systems Shein has in place to mitigate such risks, and
- The transparency of the recommender systems that Shein uses to propose content and products to users.
Risk-assessment reports
The EU body said that its decision followed preliminary analyses of risk-assessment reports provided by Shein, replies to formal requests for information, and information shared by third parties.
The commission stresses that the opening of formal proceedings does not pre-judge the outcome of the investigation.
The proceedings give the EU body the powers to take further enforcement steps – including interim measures or the adoption of a non-compliance decision. It can also accept commitments made by Shein to remedy the issues at the centre of the probe.
There is no legal deadline for the process.