Shein EU investigation over digital services act breaches

The Shein EU investigation has officially begun after the European Commission launched proceedings into the fast fashion retailer over suspected violations of the Digital Services Act (DSA). The probe will assess whether Shein has adequate systems in place to prevent illegal product listings, protect minors, and ensure transparency in its recommendation algorithms.

The European Union is examining concerns related to harmful content, platform design, and the company’s compliance with digital safety standards.

Shein EU Investigation and Illegal Product Concerns

As part of the Shein EU investigation, regulators will assess the mechanisms used to prevent the sale of illegal products. Previous reports submitted to French authorities alleged that inappropriate items had appeared on the platform.

Shein stated that it removed the flagged products, banned the sellers involved, and strengthened monitoring systems globally. The company also said it cooperated with both local and international authorities.

According to the European Commission, once systemic risks are identified on a platform, formal investigative proceedings may follow.

For official details about digital platform obligations, see the European Commission’s Digital Services Act framework:

Addictive Design and Algorithm Transparency

Another central issue in the Shein EU investigation involves platform design and algorithmic transparency. EU officials expressed concern over so-called “gamification” features, including rewards programs that may encourage excessive engagement.

Under the Digital Services Act, platforms must clearly disclose how recommender systems function and provide users with at least one option that does not rely on profiling personal data.

Potential Consequences Under EU Law

If violations are confirmed, the Shein EU investigation could result in enforcement measures. Under the Digital Services Act, fines may reach up to 6% of global annual turnover. Shein reported approximately $38 billion in sales in 2024.

The Commission noted that Shein has responded cooperatively to prior information requests. The company stated that it has invested significantly in compliance systems, systemic risk assessments, and enhanced protections for younger users.