European Union regulators are investigating Shein over concerns the online retailer hasn’t done enough to limit the sale of illegal products or protect users from the platform’s allegedly addictive design.
The 27-nation bloc’s executive arm said Tuesday that it opened formal investigation under the bloc’s sweeping rulebook generally known as the Digital Services Act, which requires the most important online platforms to take extra steps to guard web users from dodgy products.
Shein could also be required to change its actions, or pay a hefty tremendous if a so-called non-compliance decision is reached following an in-depth investigation, the European Commission said.
One area its investigation is specializing in is whether or not Shein has the right safeguards in place to limit the sale of products which can be illegal within the EU, the commission said, including items that quantity to child sexual abuse material equivalent to “child-like sex dolls.”
The fast-fashion giant got here under fire last 12 months in France, where authorities found illegal weapons including firearms, knives and machetes in addition to child-like sex dolls on the market on its website. The French government sought to suspend access to the Shein site in France. A court blocked that motion and asked the commission to analyze under the bloc’s Digital Services Act.
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The commission says it is going to also determine whether Shein has systems to mitigate risks related to what it says is the platform’s addictive design, which incorporates giving users points or rewards “for engagement.”
And regulators are also targeting the transparency of Shein’s suggestion systems that suggest more products to consumers. They’re concerned that the corporate doesn’t clearly explain to users why they’re being beneficial specific products.
Shein said it takes its obligations seriously and can proceed to cooperate with the commission.
The corporate said it has invested significantly in strengthening compliance with the DSA. The measures “comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways in which promote a protected and trusted user experience.”
“Protecting minors and reducing the danger of harmful content and behaviours are central to how we develop and operate our platform,” the corporate said in a press statement.
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