EU Commission: Shein must deliver more

The EU Commission is focusing on the online fashion marketplace Shein, which originates from China. Based on the Digital Services Act (DSA), the Commission is requesting internal documents and detailed information from Shein regarding possible problems with the DSA rules. Brussels has set the trading platform a deadline of February 27 for this. Shein first received such a formal request for information in June 2024.

Among other things, the Commission wants to know exactly how Shein deals with illegal offers on the platform. These range from trademark infringements to lead-containing shoes and highly flammable children's pyjamas sold via the marketplace. The Commission is requesting information on how risks to public health and consumer protection are safeguarded. Brussels also wants to know how the Chinese marketplace operator handles the personal data of its users and customers.

Infinite Styles Services, the company behind the Shein platform, which is also popular in Germany, has its European headquarters in Ireland. Shein recently stated that 126 million active users from the EU accessed the site or app each month. As the DSA supervisory authority for all providers with more than 45 million EU users per month, the Commission is responsible for Shein, not the Irish supervisory authority. If the company is found not to be complying with EU law, it could face heavy fines under the DSA.

This would require the Commission to initiate DSA proceedings under Article 66 following the formal request for information. Many observers expect this step to be taken this spring – Once initiated, the supervisory authority can add further aspects to the proceedings at any time. The rapidly growing providers from China and the problems with non-compliance with EU regulations are currently occupying the EU in very different contexts.

(vbr)