Shein gets more questions from EU about DSA compliance
The European Commission has intensified its investigation of fast-fashion giant Shein by issuing a new request for information (RFI) under the Digital Services Act (DSA). This move is part of the EU’s effort to ensure compliance with DSA rules, focusing on algorithmic transparency and data access for researchers to study systemic risks. Despite the potential for penalties up to 6% of global annual turnover, no fines have been issued yet to very large online platforms (VLOPs) like Shein.
The latest RFI demands Shein provide internal documents and detailed information on risks associated with illegal content and goods on its marketplace. The Commission also seeks transparency in Shein’s recommender systems and access to data for qualified researchers. Additionally, Shein is required to report on measures to mitigate risks related to consumer protection, public health, and user wellbeing, as well as the protection of users’ personal data. Shein has until February 27 to respond.
The EU’s concerns extend to the broader implications of low-cost e-commerce platforms, such as the distribution of dangerous or counterfeit products and environmental impacts from cheap goods. A new strategy targeting these issues has been proposed, focusing on customs reforms and existing laws like product rules and consumer protection. The Commission emphasizes its role in overseeing VLOPs’ compliance with the DSA, including restrictions on anti-consumer tactics.
Despite multiple requests for information, the EU has not yet opened formal investigations on Shein. However, a DSA probe has been ongoing for AliExpress since March last year, and another was initiated on Temu in October 2024. These probes address issues such as risk mitigation, content moderation, and algorithmic transparency. Shein has expressed its commitment to addressing the RFI and aligning with the Commission’s consumer protection goals.
Source: Shein gets more questions from EU about DSA compliance | TechCrunch
