The European Union has opened a formal investigation into Singapore’s fast-fashion retailer Shein over suspected breaches of its digital regulations, including the alleged sale of childlike sex dolls.
The European Commission, the bloc’s executive body, said it would assess the safeguards the Chinese company has in place to stop the listing of illegal items “including content which could constitute child sexual abuse material”.
Officials will also examine the platform’s design, focusing on concerns about “addictive” features as well as the transparency of its product-recommendation systems.
In response, Shein said: “Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform.”
The probe follows reports last year that French authorities were alerted to listings of “sex dolls with a childlike appearance” on the company’s site.
Shein said it acted quickly by removing the products, banning the sellers, and halting the sale of sex dolls “regardless of appearance” across its global platform.
The firm added that it cooperated with local and international authorities to investigate both buyers and sellers connected to the listings.
According to the Commission, the inquiry will review the systems Shein uses to prevent the sale of illegal items, including weapons, though it did not name specific products.
The EC has previously sent several information requests to the company, with spokesperson Thomas Regnier telling the BBC’s World Business Report that Shein had been “very cooperative”.
However, the Commission said that when there are indications of systemic risks to users, it has the authority to open formal proceedings.
Regnier added that the EC was particularly concerned about the “addictive” nature of the site and the “gamification” elements built into it, including its “rewards programme” for shoppers.
He noted that the Commission was not opposed to reward schemes in general, but warned that platform algorithms were “often opaque”.
“You don’t know how they’re being designed [and] you’re not in control of what you see,” he said.
The investigation will also look into the transparency of Shein’s “recommender systems”, which rely on user data to suggest products.
Under the Digital Services Act, the company must disclose the main factors behind its recommendations and offer users “at least one easily accessible option” that does not rely on profiling their purchasing behaviour.
By opening a formal investigation, the Commission gains the power to take enforcement action, including fines of up to 6% of a company’s global turnover. Shein reported $38bn in sales for 2024, according to its latest available figures.
A spokesperson for the company said: “Over the last few months, we have continued to invest significantly in measures to strengthen our compliance with the DSA.
“These include comprehensive 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,” it said.
