The European Union raised its tone against the Chinese giant Shein. The block opened, this Tuesday (17), a formal investigation to investigate the sale of illegal products and the use of design strategies considered addictive by the platform.
The measure is based on Europe’s Digital Services Act, which requires large retailers to strictly combat harmful content. Pressure increased following serious allegations, including the sale of child-like sex dolls — items that Shein says it has withdrawn from circulation around the world following France’s warning.
The European Commission wants to understand how recommendation algorithms work and whether Shein uses reward systems, such as points for engagement, to keep users connected on a compulsive basis. In a statement, Shein stated that it is cooperating with regulators and that it has invested heavily in security and risk mitigation to comply with the bloc’s standards. If violations are proven, the retailer could face huge fines of up to six percent of its global revenue.
