EU opens Shein probe over ‘addictive’ fast-fashion app

The European Commission has opened a formal investigation into fast-fashion platform Shein under the EU’s Digital Services Act (DSA), focusing on what it calls “addictive design” and the sale of illegal products. In a press release issued on Tuesday, the Commission said the probe will assess whether Shein’s service and algorithms comply with new online platform rules aimed at protecting consumers.

Shein, a Chinese-founded fashion company headquartered in Singapore, has rapidly grown its user base in Europe through a mobile app and website featuring low-cost clothing and accessories. The Commission’s action marks a significant escalation in EU oversight of the retailer’s digital practices and product controls.

Under the DSA, very large online platforms face specific obligations on transparency, risk management and user protection. The Commission will now examine Shein’s internal systems and documentation to determine whether further enforcement steps are required.

EU regulators are particularly concerned about the way Shein uses design and engagement tools to shape user behaviour. The Commission said it will investigate points and rewards systems that it believes may make the platform addictive, potentially affecting consumer well-being.

The inquiry will also cover the transparency of Shein’s recommender systems, which determine how products are shown to users. Officials want to understand how these algorithms operate and whether consumers receive adequate information about why certain items are promoted in their feeds.

These elements form part of a broader DSA requirement that large platforms mitigate systemic risks, including risks to mental health and vulnerable users, when deploying engagement and personalization tools.

Alongside design issues, the Commission will review Shein’s measures to prevent the sale of illegal products in the EU, including what it described as child sexual abuse material and “child-like sex dolls.” The investigation will look at how Shein vets listings, responds to reports and removes prohibited goods.

French authorities previously sought a suspension of Shein’s website after reports of sex doll listings, but a Paris court rejected that move in December. Instead, the court ordered Shein to introduce age verification for adult products and imposed a fine for any breaches, according to Reuters.

Beyond Europe, South Korean regulators have on several occasions found toxic substances above legal limits in Shein products, and a Texas court has said it would examine alleged “unethical labor practices and the sale of unsafe consumer products.” Texas Attorney General Ken Paxton stated that companies cutting corners on labor standards or safety would be held accountable.

The new DSA probe follows earlier EU interventions over Shein’s marketing and customer service practices. In May, the bloc accused the company of misleading consumers with fake discounts and unclear information, failing to process refunds properly, and obscuring contact details for customer support, which it described as a breach of EU law.

Taken together, the allegations span multiple aspects of Shein’s operations: product safety, labor concerns, marketing transparency, refund handling and now the design of its app experience. The Commission’s latest step indicates that EU regulators view these issues as connected parts of Shein’s overall risk profile in the single market.

Shein did not respond to a request for comment from Business Insider regarding the DSA probe. The outcome of the investigation could have implications for how the company structures its platform in Europe and for the broader application of the DSA to fast-growing e-commerce players.