The European Commission has opened a formal proceeding against online retailer Shein under the Digital Services Act (DSA). The complaint focuses on the company’s allegedly addictive design, the lack of transparency in its recommendation systems, and the sale of products that may be illegal, including content depicting child sexual abuse.
The investigation will scrutinize Shein’s measures to curb the sale of illicit goods within the EU and assess how the service is structured-particularly the allocation of consumer points-alongside its recommendation‑system transparency. Under the DSA, Shein is required to disclose the key parameters of its recommendation algorithms and to offer a non‑profiling alternative for users.
“Illegal products are prohibited in the EU, whether they appear on a physical shop shelf or on an online marketplace” said Vice‑Commissioner Henna Virkkunen. “The DSA is meant to keep buyers safe, protect their well‑being, and provide them with information about the algorithms they interact with. We will examine whether Shein is upholding these rules and its responsibilities”.