The European Union has formally launched an investigation into fast-fashion giant Shein over suspected violations of digital safety laws, including the alleged sale of illegal and harmful products.

The probe, led by the European Commission, will examine whether Shein has adequate safeguards in place to prevent prohibited items, protect minors, and ensure transparency in how its platform recommends products to users.

Authorities are particularly concerned about Shein’s recommender algorithms and platform design, including reward systems and gamified features that may encourage excessive use without clear user understanding.

Regulators also want to confirm that Shein complies with the Digital Services Act requirement to offer recommendation options that do not rely on personal profiling.

Shein has stated that it takes user safety seriously, emphasizing that it has removed problematic listings, banned sellers involved, and strengthened compliance systems.

The company also said it is cooperating fully with regulators and investing heavily in safety measures and risk-mitigation frameworks.

If violations are confirmed, the European Commission has the authority to impose penalties of up to 6% of Shein’s global annual revenue, potentially amounting to billions of dollars, marking one of the most significant regulatory challenges the company has faced in Europe.