The European Commission has initiated an investigation into Shein, suspecting that the company is failing to effectively combat the sale of illegal products that breach European standards.

On this day, Brussels formally requested information from Shein about the consumer risks associated with illegal products available on its platform.

This request could potentially lead to a second investigation if Shein's responses do not adequately address the European Commission's concerns.

A possible follow-up inquiry under the Digital Services Act (DSA) would scrutinize Shein's e-commerce systems, particularly focusing on reporting mechanisms and the verification of seller identities.

The DSA mandates that platforms like Shein manage illegal content and conduct random checks on advertisements to ensure compliance.

As part of the investigation, Shein is required to submit internal documents and detailed information about the risks of illegal products, transparency in its recommendation systems, and user data protection by the end of February 2025.

Brussels will coordinate its investigation with the Consumer Protection Cooperation network among EU member states to ensure a comprehensive approach.

In addition to the investigation, the Commission has announced plans to impose 'processing fees' on billions of parcels entering the EU to finance enhanced customs checks against illegal products.

Previously, in June 2024, the Commission had reached out to Shein regarding its systems for reporting illegal products, deceptive interfaces, minor protection, and merchant traceability.

Despite facing criticism for its negative social and environmental impacts within the fast fashion industry, Shein has pledged to work with stakeholders to address these concerns.

Notably, in 2024, Shein became the leading fashion retailer among French consumers in terms of spending.