- The European Commission is probing online fashion platform, Shein, under its Digital Services Act (DSA).
- The Commission is investigating potential risks associated with illegal content and goods on Shein’s marketplace.
- Shein, now headquartered in Singapore, has until 27 February to respond to the DSA request.
- This probe is part of a broader trend towards enhanced digital engagement and stricter regulation of online platforms.
The European Commission has recently requested additional information from the online fashion platform, Shein, under its Digital Services Act (DSA). This request comes in the wake of a consumer protection probe launched into the Asian clothes retail giant. The Commission is seeking information on potential risks associated with illegal content and goods on Shein’s marketplace, the transparency of its recommender systems, access to data for qualified researchers, and measures adopted to mitigate risks relating to consumer protection, public health, and users’ wellbeing.
The DSA is a comprehensive set of rules aimed at addressing the challenges posed by digital services, particularly online platforms. It was enacted in late 2023 and has since been applied to several online platforms, including Meta, TikTok, and X. The Act is designed to ensure that these platforms operate in a manner that is transparent, fair, and conducive to the wellbeing of their users.
The Commission’s request to Shein comes a day after the EU executive launched a consumer protection probe into the clothes retailer. This probe was accompanied by the publication of a “toolbox” for handling challenges posed by online shopping from Chinese websites that fail to comply with EU standards in terms of quality, environment, and fair commercial practices.
Shein’s Response and Previous DSA Obligations
Shein, which was founded in China but is now headquartered in Singapore, has until 27 February to respond to the DSA request. The Commission will then assess the replies and determine the next steps. A spokesperson for Shein stated, “We share the Commission’s goal of ensuring that consumers in the EU can shop online with peace of mind, we have received the request for information, and we are working to promptly address it.”
In June of the previous year, the Commission had sent a request for information to Shein regarding the measures it had taken to comply with the DSA obligations. These obligations included the so-called ‘Notice and Action mechanism’ to notify illegal products, ‘dark patterns’ on its online interfaces, the protection of minors, the transparency of recommender systems, the traceability of traders, and compliance by design.
Broader Trend Towards Enhanced Digital Engagement
The Commission’s actions against Shein are part of a broader trend towards enhanced digital engagement. For instance, MxnnCreates, a creative software studio, recently announced the launch of 3D interactive web experiences. The company reported that websites using these elements have seen a 350% increase in average user session duration compared to traditional sites. This trend towards interactive web design is becoming increasingly prevalent as businesses seek to capture a more engaged online audience.
In a similar vein, the European Commission has also asked China’s Shein for information on illegal content and goods. This request was made as part of a crackdown against a flood of cheap e-commerce imports into the European Union. The Commission’s concerns were triggered by some 4.6 billion low-value items below 22 euros ($23) imported into the EU last year, equal to 12 million parcels per day, 91% of which came from China.