Europe probes Shein's addictive app design and illegal product sales

Source: Engadget

Investigation Overview

The European Commission (EC) has opened an investigation into low‑cost fast‑fashion retailer Shein under the Digital Services Act (DSA). The probe focuses on:

• The sale of illegal products, including child sexual abuse material.
• The potentially addictive design of Shein’s shopping experience.

The Commission previously found fellow low‑cost retailer Temu in violation of the DSA after a similar investigation last year.

Key Concerns

Addictive Design

• Examination of how Shein drives shopper engagement, including its points and rewards system.
• Assessment of whether the company is mitigating the risk of addiction through these and other features.

Algorithmic Recommendations

• Shein will be asked to disclose how it suggests products to users.
• The Commission requires that Shein offer a recommendation system that is not based on profiling.

Illegal Product Sales

• Investigation into the presence of prohibited items, notably child sexual abuse material, on the platform.

Regulatory Context

• Digital Services Act – EU framework governing online services, providing the Commission with authority to collect evidence, levy fines, and demand changes.
• Recent EU actions include:
  • Requiring TikTok to modify its platform after a similar probe on addictive design.
  • Launching an investigation into X’s recommendation algorithm.

Potential Consequences

The Commission will continue gathering evidence. If violations are confirmed, it can impose fines and mandate changes for Shein to continue operating within the EU.

Source

This article originally appeared on Engadget: Europe probes Shein’s addictive app design and illegal product sales