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This comes alongside an investigation into Shein by the EU’s Consumer Protection Cooperation Network.
The European Commission has asked fast-fashion e-retailer Shein for more information on the risks linked to illegal goods on its marketplace, the transparency of its recommender system and access to data for researchers.
This follows a previous request by the Commission in June last year on the measures the Singapore-headquartered business took to comply with EU’s Digital Services Act (DSA), which regulates online platforms, including marketplaces, to prevent illegal and harmful activities.
As part of its request last year, Shein was asked to provide information on the measures it took to tackle illegal products and dark patterns on its platform, how it protected minors, the transparency of its recommender systems and the traceability of traders.
While in a statement today (6 February), the Commission also said that it asked Shein – valued at $45bn last year – to provide internal documents and detailed information on the measures it has adopted to mitigate risks relating to consumer protection, public health and users’ wellbeing. Moreover, the Commission has also requested details on the protection of personal data on its website and marketplace.
Shein must provide the Commission with the necessary information by 27 February. Based on the assessment of this information, the EU could open formal investigations into the retailer’s practices under the DSA.
Responding to the latest request for information, a spokesperson for Shein told TechCrunch: “We share the Commission’s goal of ensuring that consumers in the EU can shop online with peace of mind, we have received the request for information, and we are working to promptly address it.”
The EU started looking into Shein alongside fellow fast-fashion retailer Temu last year, just months after being categorised as Very Large Online Platforms by the EU, which means these companies are now subject to the “most stringent rules” of the DSA.
The latest request for information comes alongside an investigation into Shein which was launched by the EU’s Consumer Protection Cooperation Network yesterday (5 February) over suspicion of the company’s infringement of consumer protection rules.
While in October last year, the EU formally launched an investigation into Temu to assess whether the Chinese online retailer breached DSA terms.
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