After the scandal surrounding the sale of sex dolls with child-like appearance, the EU Commission is initiating formal proceedings against the Chinese online retailer Shein. The Brussels authority suspects the company of not doing enough to prevent the distribution of illegal products on its platform and of neglecting consumer protection.
Shein has sparked a lot of criticism in Europe in recent months. In addition to childlike-looking sex dolls, customers have now also been able to purchase weapons and medications that require a permit on the online marketplace. The company itself withdrew the offers after criticism from its side.
The online giant announced that it wanted to work with the EU Commission on the process. “We share the Commission’s goal of ensuring a safe and trustworthy online environment and will continue to engage constructively in this process,” said Shein. Since the past incidents, there has already been an improvement in security precautions – for example with age-restricted products.
Reward system could also be illegal
According to the EU Commission, the procedure that has now been opened focuses on two other areas in addition to illegal products. The presumably addictive design should also be examined closely. For example, points and reward systems that are intended to encourage customers to consume more. The Brussels authority argues that these could have a negative impact on consumer protection.
It is also about the transparency of the recommendations with which Shein suggests products to its users using an algorithm. European law requires large platforms to disclose the key parameters of their algorithms. Accordingly, users must also have easy access to at least one recommendation system that is not based on personal data.
France fails with request to block Shein
Pressure on the EU Commission to take tough action against Shein has recently come particularly from France. The French government even tried to block the online platform for three months, but initially failed in court at the end of December. The judges ruled that such a block would be an unjustified impairment of entrepreneurial freedom.
According to the EU Commission, the French authorities’ investigations and their own proceedings are independent of each other. At the beginning of November, Shein opened its first permanent retail space in France. At that time, demonstrators protested against fast fashion, the retailer’s working conditions and its ecological footprint.
There could be a fine – a ban is unlikely
The basis for the EU proceedings against Shein is the Digital Services Act (DSA for short). The EU Commission monitors compliance with these rules in the European Union. Among other things, they are intended to ensure that platforms remove illegal content on their sites more quickly. It is made easier for users to report such content. In principle, large providers have to follow more rules than small ones. Shein is both a manufacturer, retailer and marketplace.
It is the first time that the Brussels authorities have opened proceedings against Shein. It gives the internet watchdogs further options in the investigation – such as requesting internal documents and requesting further information. How long the process will take is unclear; the law sets no deadline for this. According to the Brussels authority, the initiation of proceedings on the basis of the DSA does not mean that there is enough evidence that Shein has violated the rules.
However, if the EU Commission determines that there are violations of the rules, it can impose a fine. The Brussels internet watchdogs can also accept promises from Shein and stop the investigation. Blocking the platform is considered a last resort and rather unlikely.
