Brussels is investigating Shein for selling illegal material such as child sex dolls.

BrusselsNew offensive from Brussels against the fast fashion company SheinThe European Commission announced on Tuesday that it has opened an investigation into the Chinese company Shein for alleged violations of EU regulations due to the addictive design of its website, a lack of transparency in its recommendation systems, and the sale of illegal products, such as child-like sex dolls. The European Commission believes that Shein may be violating the Digital Services Act by selling what constitutes "child sexual abuse material." It also believes that awarding customers points or prizes for being logged in is illegal because it fosters consumer addiction. Furthermore, Brussels criticizes the Chinese company for not implementing measures to mitigate these risks. "The addictive features could have a negative impact on user well-being and online consumer protection," states the press release issued by the Commission on Tuesday. Additionally, Brussels believes that the fast-fashion company's recommendation systems for suggesting content and products to users are illegal. Thus, the European Commission is demanding that the Chinese company inform consumers about the parameters it uses to make recommendations and at least offer an option that is not based on the customer profile information it has on its website.

However, the European Commission clarifies that opening a procedure like the one it initiated this Tuesday does not "prejudge" the final conclusions of the investigation. The EU executive also reports that it will work closely with the Irish authorities, in the country where the Chinese company is headquartered and from where it operates throughout the European Union.

The measures Shein must take

With the opening of this formal investigation, Brussels can request further information from the Chinese company at any time, for example, regarding its recommendation systems. Furthermore, the European Commission can now demand that Shein implement all necessary measures to comply with European Union digital regulations. In any case, the European Commission is avoiding setting any timeframe and maintains that the duration of these in-depth investigations depends on various factors, such as the complexity of the case and the company's willingness to cooperate with EU authorities. However, if Shein does not comply with the European Commission's demands, it could face fines of up to 6% of its global revenue.

It's worth remembering that Shein is one of the brands most closely watched by the European Commission. Just last year, the EU agreed to remove the exemption from customs duties on packages arriving in the bloc valued at less than €150, a measure that primarily affects Chinese platforms like Shein and Temu. It is expected that these types of products will now be subject to a duty of between €2 and €3.