The European Union recently unveiled an investigation into Shein to determine whether it has violated the bloc’s consumer protection laws.
European Union (EU) regulators are asking the Chinese e-commerce retailer Shein to provide internal documents about the risks related to illegal content and products on its platform, the bloc’s executive commission
announced on Feb. 6.
The new request follows the European Commission’s announcement of a joint investigation into Shein to determine whether it has violated the bloc’s consumer protection laws. The commission stated that the latest request does not interfere with the ongoing probe, which is being carried out in coordination with national consumer watchdogs.
The request was made under the Digital Services Act (DSA), a
rulebook designed to monitor how social media platforms and marketplaces remove illegal content and products from the regional internet. Confirmed violations of the DSA can result in fines of up to 6 percent of a company’s global revenue.
The commission is demanding a wide range of information, including details on how the platform safeguards users’ personal data and the “transparency of its recommender systems.” It is also looking for “detailed information” on how Shein addresses risks related to consumer protection, public health, and user well-being.
Additionally, according to the statement, the commission asked Shein to hand over documents on how it meets its
obligations under the DSA to grant qualified external researchers access to its data.
Shein has until Feb. 27 to respond to these inquiries. The commission will evaluate the responses before deciding on further actions, including initiating a formal investigation, it stated.
Founded in 2008 in Nanjing, China, Shein has quickly gained a foothold in the EU market by offering low-priced products, often shipped directly from China to European consumers.
In April 2024, the European Commission declared Shein a “very large online platform” after the company reported that
108 million European users visited its site every month. That designation subjects Shein to the “
most stringent rules“ under the DSA.
European regulators have already raised numerous concerns regarding Shein, such as questions about its online
interface design and whether it sources its cotton products from China’s
Xinjiang region, where rights groups say that the Chinese Communist Party has placed at least 1 million Uyghur Muslims in forced labor camps.
Shein, now headquartered in Singapore, did not respond to The Epoch Times’ request for comment by publication time.
EU to Rein In Cheap Products
Shein and its low-cost rivals, including Temu and AliExpress, are also facing new customs restrictions as the EU seeks to crack down on the influx of cheap products flooding its market, primarily from China.In an
action plan published on Feb. 5, the European Commission
called for enhanced collaboration among customs, market surveillance, and competent authorities across its member states. The commission stated that this initiative addresses the health, safety, and other risks associated with e-commerce imports from outside the EU.
Last year, the number of low-value items valued at less than 150 euros ($156) entering the EU almost doubled and reached about 4.6 billion euros ($4.8 billion), or an estimated 12 million parcels per day. More than 90 percent of these parcels originated in China, according to the European Commission.
This rapid influx has raised significant concerns within the EU. The commission pointed to the risk of harmful products entering the market unchecked. Moreover, it said that compliant EU traders are at risk of being undermined by “unfair practices and the sale of counterfeit goods through online marketplaces.”
To tackle these issues, the commission urges European lawmakers to “consider further measures”—including a “non-discriminatory handling fee” on items shipped directly to EU consumers—in order to address the rising costs of ensuring compliance for billions of such items with EU rules, according to the action plan.
The European Commission also urged lawmakers to swiftly adopt the plan introduced in
2023. The plan seeks to level the playing field in e-commerce by eliminating the exemption for customs fees on items valued under 150 euros, among other actions.
“The rise in e-commerce imports to the EU market has brought with it many challenges,” EU tech chief Henna Virkkunen said in a
statement. “We want to see a competitive e-commerce sector that keeps consumers safe, offers convenient products, and is respectful of the environment.”
