EU Commission Launches Formal Probe Into Shein Over Illicit Goods and Algorithmic Opacity.
Economy / Finance

EU Commission Launches Formal Probe Into Shein Over Illicit Goods and Algorithmic Opacity.

The European Commission has launched a formal investigation against online retailer Shein under the Digital Services Act. The action focuses on three main concerns: an addict‑inducing design, a lack of transparency in recommendation systems, and the sale of possibly illegal items, including depictions of sexual child abuse. The inquiry will examine Shein’s measures to curb the sale of illegal products across the EU, the way the platform assigns consumer points, and the overall transparency of its recommendation algorithms. According to the Act, Shein must disclose the key parameters of its recommendation systems and provide users with a non‑profiling option.

Commission Vice‑President Henna Virkkunen said, “In the EU, illegal products are prohibited – whether they appear on a shop’s shelves or on an online marketplace”. She added that the Digital Services Act is intended to keep buyers safe, protect their well‑being, and give them information about the algorithms they interact with. “We will investigate whether Shein is complying with these rules and its responsibilities”.