EU ramps up safety rules for online giant Shein

On Friday, the European Union announced that Shein, the online fast-fashion retailer, will be subject to the bloc’s most rigorous digital regulations under the Digital Services Act (DSA). The EU’s Executive Commission has now designated Shein as a “very large online platform,” placing it alongside other major platforms that require closer monitoring to ensure user safety online.

Originating in China and now headquartered in Singapore, Shein mainly connects with its customers via its mobile application. The company, known for its budget-friendly clothing and home goods, did not immediately respond to requests for comments.

Shein has rapidly gained popularity in Western markets, particularly among young women, by leveraging social media collaborations with influencers and celebrities to offer affordable fashion and lifestyle products.

With over 45 million users in Europe, Shein is required to comply with stringent DSA mandates by August. These include implementing measures to safeguard users and curbing “systemic risks” such as the distribution of illegal or counterfeit items.

Furthermore, Shein must modify its user interfaces and recommendation algorithms to minimize threats to consumer safety and welfare. The company is also obliged to produce annual risk assessment reports to evaluate potential hazards to users, with a particular focus on children.

Currently, the EU’s list of significant online services under strict supervision includes 22 tech giants like Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search, following the DSA’s implementation last year. Other online services in the EU must also adhere to the general provisions of the law, with potential fines for non-compliance reaching up to 6% of a company’s annual global revenue.