The EU wants to know what plans Shein has to limit the sale of illegal products in the bloc.
The European Commission is investigating Shein after he sold baby dolls to the bloc. Ireland’s media regulator Coimisiún na Meán will take part in the investigation as Shein’s EU operations are headquartered in Dublin.
Shein began to catch fire in 2025 after it was revealed that an e-China retailer allowed the sale of lifelike sex dolls that resemble young girls in the EU. The French government, at the time, threatened to ban Shein from the country, but the trader was unharmed after he removed the illegal goods.
The EU’s Digital Services Act (DSA) investigation into Shein will investigate plans the company has in place to “restrict” the sale of illegal products in the EU.
It will also look at the potential risks associated with Shein’s “addictive design” – which includes incentives such as points or negotiation rewards, and the ways he can mitigate them.
In addition, the investigation will investigate the transparency of the algorithm that Shein uses to recommend content and products to users. Under the DSA, platforms are obliged to disclose the key parameters they use in their recommendation systems.
In response to the inquiry, Shein said he continued to invest “heavily” in strengthening DSA compliance.
“This includes a thorough assessment of the system’s vulnerability and mitigation frameworks, improved protection for young users, and ongoing work to design our services in ways that improve a safe and reliable user experience,” he explained.
The company added that it has partnered with the Commission to introduce age verification tools across the EU.
Legal proceedings were initiated after the EU analyzed risk assessment reports and requests for information provided by Shein, and received information from third party stakeholders.
Shein has been under the EU’s radar since it was designated as a Version Large Online Platform (VLOP) alongside Temu back in 2024. The nomination meant Shein was subject to some of the strictest rules under the DSA.
The EU has sent Shein many requests for information since its appointment as VLOP, asking for information on child protection, methods of reporting illegal products, disclosure of the recommendation system and access to researchers’ data.
The new investigation into Shein is in line with the action regarding Shein’s compliance with the state’s consumer law.
The Consumer Protection Cooperation Network of the EU, in a joint study with the European Commission found last year that Shein used many practices that violate EU laws. This included offering fake discounts on its website pretending to offer better deals, putting pressure on shoppers by showing ‘deal’ deadlines and using deceptive labeling to lure shoppers.
Potentially addictive websites selling illegal goods aren’t Shein’s only problem. Last August, Dublin-based company Infinite Styles Services, which manages Shein’s European trading websites, was fined €1m by Italian competition authorities for laundering its products.
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