The European Union (EU) has launched a formal investigation into fast fashion giant Shein, citing possible breaches of digital law, specifically concerning the sale of illegal products such as childlike sex dolls. The European Commission (EC), the executive arm of the EU, stated that it will scrutinize the systems Shein has in place to prevent the sale of illicit items, including content that could constitute child sexual abuse material. Furthermore, the investigation will delve into the platform's "addictive design" and the transparency of its recommender systems, which suggest products and content to shoppers.

Shein has responded to these concerns, asserting that "Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform." The company previously faced reports to French authorities last year for selling "sex dolls with a childlike appearance." In response, Shein claimed to have immediately removed the products, banned the sellers, and subsequently removed the sale of all sex dolls, "regardless of appearance," across its global site. The firm also stated its collaboration with local and international authorities on investigations into both the buyers and sellers involved with the childlike sex dolls.

While the Commission indicated its investigation into Shein's systems for limiting illegal products would include weapons, it declined to specify other particular items. EC spokesperson Thomas Regnier noted Shein's "very cooperative" stance following previous requests for information. However, the EC clarified that if there are indications of systemic risks to users, it can initiate proceedings for further investigation.

Regnier voiced the EC's apprehension regarding the "addictive" nature of Shein's website and the "gamification" of its platform, including its "rewards programme" for consumers. He clarified that the Commission is not inherently against reward programmes but highlighted concerns about the often opaque algorithms of online platforms, where users may not understand their design or control what they see.

The EC's investigation will also scrutinize the transparency of Shein's "recommender systems." Under the Digital Services Act (DSA), Shein is mandated to disclose the main parameters used for product recommendations and must provide users with "at least one easily accessible option" that does not rely on their data for profiling likely purchases. Opening a formal investigation empowers the EC to take "enforcement steps," which could include fines of up to 6% of a company's global sales. For 2024, Shein reported sales totaling $38 billion.

A spokesperson for Shein commented on their efforts, stating, "Over the last few months, we have continued to invest significantly in measures to strengthen our compliance with the DSA. These include comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways that promote a safe and trusted user experience."