Shein’s Addictive Design, Illegal Sex Dolls Probed
▼ Summary
– The European Union has launched a formal investigation into Shein for potential violations of the Digital Services Act (DSA).
– The probe was triggered after French regulators found listings for items like “child-like sex dolls” on the platform last year.
– The investigation will assess Shein’s systems for curbing illegal sales, its content recommendation transparency, and its potentially addictive design features.
– Shein faces potential fines of up to 6% of its global revenue, which could amount to $2.2 billion based on its 2024 earnings.
– Shein stated it has invested in improving DSA compliance and will engage constructively with the investigation.
The European Union has launched a formal investigation into the online fashion giant Shein, focusing on its compliance with the bloc’s stringent digital safety regulations. This probe follows a discovery by French authorities of listings for “child-like sex dolls” on the platform last year, raising serious concerns about the effectiveness of its content moderation systems. The investigation, conducted under the EU’s Digital Services Act (DSA), will scrutinize whether Shein’s internal mechanisms are adequate for preventing the sale of illegal goods, including material that could be classified as child sexual abuse content.
Beyond the immediate issue of illegal products, the European Commission will also delve into the platform’s design and user engagement strategies. A significant area of inquiry is the transparency of Shein’s content recommendation algorithms and the potential risks posed by its “addictive design.” This includes examining gamified features that reward users with points and other incentives, which regulators believe may manipulate consumer behavior and well-being. The DSA framework is designed to empower users by providing clear information about the algorithmic systems that shape their online experience.
EU tech chief Henna Virkkunen emphasized the universal application of the law, stating that illegal products are banned whether they appear on a physical store shelf or a digital marketplace. The DSA’s core purpose is to ensure shopper safety, protect their mental health, and foster transparency. The investigation will determine if Shein is upholding these standards and fully meeting its responsibilities as a major online platform.
The financial stakes for Shein are considerable. Violations of the DSA can result in fines of up to 6 percent of a company’s annual global revenue. Based on Shein’s reported $37 billion revenue for 2024, this could translate to potential penalties exceeding $2.2 billion. In response to the announcement, Shein issued a statement affirming its commitment to compliance, noting substantial recent investments in enhancing detection tools and safeguards for age-restricted products. The company expressed a shared goal with the Commission of maintaining a safe online environment and pledged constructive cooperation throughout the investigative process.
(Source: The Verge)
