Shein faces formal proceedings under EU Digital Services Act

The European Commission has opened formal proceedings against Shein under the Digital Services Act over addictive design and illegal product risks. The move follows preliminary reviews of company reports and responses to information requests. Officials said the decision does not prejudge the outcome.

Investigators will review safeguards to prevent illegal products being sold in the European Union, including items that could amount to child sexual abuse material, such as child-like sex dolls. Authorities will also assess how the platform detects and removes unlawful goods offered by third-party sellers.

The Commission will examine risks linked to platform design, including engagement-based rewards that may encourage excessive use. Officials will assess whether adequate measures are in place to limit potential harm to users’ well-being and ensure effective consumer protection online.

Transparency obligations under the DSA are another focal point. Platforms must clearly disclose the main parameters of their recommender systems and provide at least one easily accessible option that is not based on profiling. The Commission will assess whether Shein meets these requirements.

Coimisiún na Meán, the Digital Services Coordinator of Ireland, will assist the investigation as Ireland is Shein’s EU base. The Commission may seek more information or adopt interim measures if needed. Proceedings run alongside consumer protection action and product safety enforcement.

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