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EU Opens Formal DSA Probe Into Shein Over Illegal Goods, Addictive Design and Algorithm Transparency

The Commission is invoking its digital‑services powers to compel fixes or levy significant fines after earlier information requests failed to resolve concerns.

Overview

  • Brussels launched a formal investigation to assess whether Shein effectively blocks illegal products, reins in gamified features that may drive compulsive buying, and offers a transparent, non‑profiling recommendation option.
  • The Digital Services Act lets the Commission demand internal documents, impose interim measures and, if breaches are proven, fine the company up to about 10% of global turnover, with platform suspension reserved as a last resort.
  • The case follows multiple EU information requests since 2024 and national safety probes, including a French scandal over childlike sex dolls, weapons and medicines that were later taken down by the platform.
  • Shein says it will cooperate, citing recent safeguards such as tighter controls on age‑restricted items, but EU officials consider prior submissions and risk assessments insufficient.
  • Designated a very large online platform in the EU, Shein faces a probe with no statutory deadline, paralleling DSA actions against rivals like Temu and AliExpress and involving Ireland’s media regulator for oversight.