Published by Global Banking & Finance Review®
Posted on February 17, 2026
3 min readLast updated: February 17, 2026
Add as preferred source on GoogleThe EU investigates Shein for illegal products and addictive design under the Digital Services Act, focusing on consumer protection and compliance.
BRUSSELS, Feb 17 (Reuters) - The EU opened a formal investigation into Chinese online retailer Shein on Tuesday over illegal products and concerns about the platform's potentially addictive design, stepping up scrutiny under the bloc's strict Digital Services Act.
The move under the Act, which requires online platforms to do more to counter illegal and harmful content, came after France urged the EU executive in November to crack down on the sale of child-like sex dolls on Shein's platform.
Shein has, since then, stopped the sale of all sex dolls worldwide.
The company and its Chinese rival Temu have become the most high-profile symbols of broader concerns over the flow of cheap Chinese products into Europe.
"The Digital Services Act keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with. We will assess whether Shein is respecting these rules and their responsibility," EU tech chief Henna Virkkunen said in a statement.
The Commission had flagged the possibility of an EU investigation last month.
ADDITIONAL SAFEGUARDS ROLLED OUT, SHEIN SAYS
Shein said it would continue to cooperate with the EU watchdog and that it had invested significantly in measures to strengthen compliance with the DSA, including conducting systemic-risk assessments and mitigation frameworks, and enhancing protection for younger users.
"In addition to enhancement of detection tools, we also accelerated the rollout of additional safeguards around age-restricted products," the company said, including age-verification measures to prevent minors from viewing or purchasing age-restricted content or products.
The European Commission said it would investigate the systems Shein has put in place in the EU to limit the sale of illegal products, including potential child sexual abuse material.
ADDICTIVE DESIGN COULD NEGATIVELY IMPACT USERS
The investigation will also focus on Shein's addictive design, including the award of points or rewards for engagement, that could have a negative impact on users' wellbeing.
The transparency of the recommender systems that Shein uses to propose content and products to users will also come under EU scrutiny.
Temu was charged last year with breaching the DSA for not properly assessing the risks of illegal products sold on its platform. A final EU decision could come this year. There are ongoing EU investigations into its addictive design features and transparency of its recommendation systems, among others.
Companies risk fines as much as 6% of their global annual turnover for DSA violations.
(Reporting by Foo Yun Chee; Editing by Bernadette Baum)
The Digital Services Act is a regulation in the EU that aims to create a safer digital space by setting rules for online platforms to tackle illegal content and protect users.
Age-restricted products are items that can only be purchased or viewed by individuals above a certain age, typically to protect minors from harmful content.
Compliance in banking refers to the adherence to laws, regulations, and guidelines that govern financial institutions, ensuring they operate within legal frameworks.
Addictive design refers to features in digital products that encourage excessive use, potentially leading to negative impacts on users' wellbeing.
Illegal products are items that are prohibited by law from being sold or distributed, often due to safety concerns or ethical considerations.
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