The European Union has added online fast-fashion retailer Shein to its list of big platforms that need extra scrutiny under the Digital Services Act, which aims to clean up online platforms and ensure user safety. Shein, originally founded in China and now based in Singapore, has seen a rapid rise in the West by offering low-cost apparel and household items, particularly targeting younger women through social media partnerships with influencers and celebrities. With over 45 million European users, Shein must begin obeying the most stringent requirements by August, including measures to protect users, limit the sale of illegal products, and assess and mitigate any systemic risks from its services.
The EU’s Executive Commission has classified Shein as a “very large online platform” and stated that the company must adjust its user interfaces and recommendation algorithms to prevent risks to consumer safety and well-being, as well as file annual risk assessment reports evaluating potential harm to consumers, especially children. Shein has committed to working constructively to ensure a safe and compliant environment for its online community, expressing support for the principles of transparency and accountability outlined in the DSA. The company’s global head of public affairs, Leonard Lin, emphasized a shared ambition to ensure that consumers in the EU can shop online with peace of mind.
As a part of the Digital Services Act, the EU has already identified 22 tech giants, including Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search, as requiring the toughest level of supervision. These platforms must also comply with the law’s general requirements, with violations punishable by fines of up to 6% of a company’s annual worldwide revenue. Other online services operating in the EU are not exempt and must ensure compliance with the regulations outlined in the DSA. The addition of Shein to the list highlights the EU’s commitment to regulating online platforms and protecting internet users from potential risks and harm.
The specific measures that Shein must implement, such as assessing and mitigating systemic risks, limiting the sale of illegal products, and adjusting its algorithms to prevent harm to consumers, reflect the EU’s efforts to hold online platforms accountable for their impact on user safety and well-being. With the growing popularity of fast-fashion retailers like Shein, the need for stricter regulations to ensure consumer protection has become increasingly important. By adding Shein to the list of platforms that require extra scrutiny under the DSA, the EU is taking proactive steps to address potential risks associated with online shopping and digital services.
Shein’s commitment to working constructively with the EU to ensure compliance with the Digital Services Act demonstrates a willingness to prioritize consumer safety and well-being. With millions of European users relying on platforms like Shein for affordable fashion and household items, it is crucial for companies to take the necessary steps to protect their online community. By meeting the requirements outlined in the DSA, Shein can contribute to creating a safer and more transparent online environment for its users, aligning with the EU’s goals of promoting accountability and protecting internet users from potential harm.
