EU Launches Investigation into Shein Over Alleged Digital Law Breaches

Published 17 February 2026

Highlights

• The European Union has launched a formal investigation into Shein over potential breaches of digital law, including the sale of childlike sex dolls and weapons.
• The investigation will scrutinize Shein's platform design, focusing on its addictive nature and transparency in recommending products.
• Under the Digital Services Act, Shein must disclose how its recommender systems work and offer non-profile-based options.
• Shein has pledged to enhance compliance with EU regulations, investing in systemic-risk assessments and protections for younger users.
• The investigation follows a previous French inquiry into illegal products on Shein's site, which led to calls for stricter controls.

The European Union has initiated a formal investigation into Chinese fast fashion retailer Shein, scrutinizing potential violations of digital law, including the sale of childlike sex dolls and weapons. The European Commission (EC) announced the inquiry, which will delve into the systems Shein employs to prevent the sale of illegal products and the transparency of its platform's design.

Focus on Addictive Design and Transparency

Central to the investigation is the "addictive design" of Shein's platform, which includes gamification elements and reward programs that may impact users' mental well-being. The EC is concerned about the opaque nature of Shein's recommender systems, which use consumer data to suggest products. Under the Digital Services Act (DSA), Shein is required to disclose the main parameters of these systems and provide users with an option that does not rely on profiling.

Thomas Regnier, an EC spokesperson, emphasized the need for transparency, stating, "You don't know how they're being designed [and] you're not in control of what you see." The investigation will also assess whether Shein's platform adequately prevents the sale of illegal items, such as weapons.

Shein's Response and Compliance Efforts

In response to the investigation, Shein has expressed its commitment to complying with EU regulations. The company stated it has been investing in measures to strengthen its adherence to the DSA, including systemic-risk assessments and enhanced protections for younger users. A spokesperson for Shein remarked, "We have continued to invest significantly in measures to strengthen our compliance with the DSA."

The investigation follows a previous French inquiry into Shein's sale of illegal products, which led to calls for stricter controls, including age verification and filtering to prevent minors from accessing inappropriate content.

What this might mean

The outcome of the EU's investigation into Shein could have significant implications for the company's operations within Europe. If found in violation of the Digital Services Act, Shein could face fines of up to 6% of its global sales, which amounted to $38 billion in 2024. This could prompt other online retailers to reassess their compliance with EU regulations to avoid similar scrutiny.

Moreover, the investigation highlights the growing importance of transparency and consumer protection in digital marketplaces. As the EU continues to enforce the Digital Services Act, other companies may need to enhance their platform designs to ensure they meet the bloc's stringent requirements. This case could set a precedent for how digital platforms are regulated, potentially leading to broader changes in the e-commerce landscape.