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EU Designates Shein as a Very Large Online Platform, Imposes Stricter Digital Services Act Rules

Shein will face enhanced regulatory scrutiny and stricter safety measures under the EU's Digital Services Act starting in August 2024.

  • The European Union has added Shein to its list of 'very large online platforms' due to its significant user base, subjecting it to stringent digital regulations.
  • Starting from the end of August 2024, Shein must comply with new rules aimed at protecting consumers from unsafe or illegal goods, especially those harmful to minors.
  • Shein's designation requires them to conduct annual risk assessments and external audits to ensure compliance with EU standards.
  • The new regulations also focus on combating the sale of counterfeit goods and enhancing transparency by granting researchers access to data.
  • Shein, headquartered in Singapore, has faced criticism for promoting hyperconsumerism and environmental damage, as well as allegations of exploiting low-paid workers.
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