LONDON (AP) 鈥� European Union regulators are investigating Shein over concerns the hasn’t done enough to limit the sale of illegal products or protect users from the platform’s allegedly addictive design.
The 27-nation bloc’s executive arm said Tuesday that it opened formal investigation under the bloc’s sweeping rulebook known as the , which requires the biggest online platforms to take extra steps to protect internet users from dodgy products.
Shein may be required to alter its actions, or pay a hefty fine if a so-called non-compliance decision is reached following an in-depth investigation, the European Commission said.
One area its investigation is focusing on is whether Shein has the proper safeguards in place to limit the sale of products that are illegal in the EU, the commission said, including items that amount to child sexual abuse material such as “child-like sex dolls.”
The the fast-fashion giant came under fire last year in France, where authorities found illegal weapons including firearms, knives and machetes as well as for sale on its website. The French government sought to to the Shein site in France. A court that action and asked the commission under the bloc鈥檚 Digital Services Act.
The commission says it will also determine whether Shein has systems to mitigate risks related to what it says is the platform鈥檚 addictive design, which includes giving users points or rewards 鈥渇or engagement.鈥�
And regulators are also targeting the transparency of Shein鈥檚 recommendation systems that suggest more products to consumers. They鈥檙e concerned that the company doesn鈥檛 clearly explain to users why they鈥檙e being recommended specific products.
Shein said it takes its obligations seriously and will continue to cooperate with the commission.
The company said it has invested significantly in strengthening compliance with the DSA. The measures 鈥渃omprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users, and ongoing work to design our services in ways that promote a safe and trusted user experience.鈥�
鈥淧rotecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform,” the company said in a press statement.
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