The European Union has announced that online fast-fashion giant Shein will now fall under its strictest level of digital regulations, joining a list of major platforms subject to increased scrutiny.
Shein, originally founded in China and now based in Singapore, has been categorized as a “very large online platform” under the EU’s Digital Services Act. This legislation aims to enhance safety and accountability on online platforms across the 27-nation bloc.
Acknowledging its classification, Shein has committed to collaborating with authorities to ensure a safe and compliant environment for its online community.
Leonard Lin, Shein’s global head of public affairs, emphasized the company’s dedication to transparency and accountability, aligning with the core principles of the DSA.
With a substantial user base of over 45 million in Europe, Shein faces stringent requirements to be met by August.
These measures include safeguarding online users, combating the sale of illegal or counterfeit products, and assessing and mitigating potential systemic risks associated with its services.
Additionally, Shein is mandated to adjust its user interfaces and recommendation algorithms to prioritize consumer safety and well-being.
The company is also required to submit annual risk assessment reports, particularly focusing on potential harm to vulnerable groups such as children.
Shein’s inclusion adds to the roster of tech giants under heightened supervision, including Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search.
While these platforms face the toughest tier of scrutiny, all online services operating in the EU must comply with the DSA’s general requirements. Non-compliance can result in fines of up to 6% of a company’s annual worldwide revenue.
