Brussels, Belgium — The European Commission has launched a formal investigation into the Chinese online retailer Shein, scrutinizing the company for several suspected violations of European laws. These concerns include the sale of potentially harmful products, such as childlike sex dolls, as well as items that may violate regulations governing the sale of goods in the European Union.

The inquiry began after the Commission requested detailed information from Shein last year. A senior EU official noted that existing reports had indicated non-compliance with EU standards in a variety of products, from apparel to cosmetics and electronics.

Investigators will focus on three main areas of concern regarding Shein’s operations. The first is the sale of illegal items. The second aspect involves the platform’s design features, which may be deemed addictive. Features like reward programs and gamification are reportedly designed in a way that could pose risks to users’ mental wellbeing. Lastly, the investigation will consider Shein’s recommendation systems, which may inundate users with product suggestions, raising questions about their efficacy and user experience.

“We suspect that Shein’s system may not effectively prevent the sale of illegal goods,” the EU official stated. “There appear to be numerous illegal products still available, suggesting that something is amiss within the framework.”

This inquiry comes on the heels of a similar investigation into another online retail platform, Temu, launched late last year. The scrutiny reflects a growing trend within the EU to hold digital companies accountable for their practices and the safety of their offerings. The Commission has raised concerns that Shein’s recommendation algorithms are opaque and may not comply with transparency requirements outlined in the EU’s Digital Services Act.

Under the provisions of this legislation, companies are required to offer alternatives that do not rely on user profiling. Preliminary findings suggest that Shein provides only vague explanations about how its recommendation system operates.

In response to the investigation, Shein stated that it takes its obligations seriously and has been actively cooperating with the European Commission as well as the Irish regulator, which will oversee the investigation. The company emphasized its commitment to improving compliance with EU regulations, highlighting recent investments in systemic risk assessments and user protection measures.

The focus on Shein follows earlier tensions with the French government, which had previously considered suspending the retailer’s operations due to the presence of illegal goods on its platform. The French inquiry primarily addresses the legality of specific products rather than the overall operational framework of the platform.

In related judicial proceedings in Paris, the court expressed concern over potential public harm linked to Shein’s offerings, though it acknowledged that such instances were not widespread. The court mandated that Shein implement robust measures, such as age verification systems, to prevent minors from accessing inappropriate content.

The investigation signals a pivotal moment for Shein as it expands its presence in Europe, recently opening its first physical store in Paris amid heightened tensions. EU officials clarified that this investigation is distinct from ongoing assessments by national consumer protection agencies.

As the scrutiny progresses, the EU has stated that a ban on Shein’s sale of products within the bloc remains a “last resort” should the company fail to address the identified issues. Concerns have previously been raised about dangerous items sold through the platform, including children’s clothing made with prohibited chemicals and baby products that pose choking hazards.

With the ongoing inquiries, the focus on Shein encapsulates broader issues within the digital retail sector, illustrating the EU’s commitment to ensuring consumer safety and regulatory compliance.