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EU Probes Shein for Illegal Goods and Addictive Design
17 Feb
Summary
- EU launched a formal investigation into Shein's practices.
- Concerns include illegal products and potentially addictive design.
- Companies face potential fines up to 6% of global annual turnover.
The European Union has initiated a formal investigation into the online retail giant Shein. This action, taken under the Digital Services Act, scrutinizes Shein for allegedly facilitating the sale of illegal products and employing design features that may be addictive to users. The investigation follows concerns raised about the platform's practices and its potential impact on consumer well-being.
Shein has reportedly ceased the sale of sex dolls worldwide following a previous directive. The company asserts its commitment to cooperating with EU authorities and highlights significant investments in compliance measures. These include enhanced detection tools, system risk assessments, and specific safeguards for younger users, such as age-verification for restricted products.
The EU's probe will examine Shein's systems for identifying and limiting illegal product sales, including potential child sexual abuse material. Additionally, the investigation will assess the impact of Shein's engagement-driving features, like reward systems, on user wellbeing. Transparency of its recommendation algorithms is also a key area of scrutiny, mirroring ongoing EU investigations into rival Temu, which also faces potential fines for DSA violations.
