The European Commission (EC) has opened an investigation into low-cost fast fashion retailer Shein. EC officials are concerned about the sale of illegal products, including child sexual abuse material, as well as the potentially addictive design of its shopping experience. The Commission found fellow low-cost retailer Temu in violation of the Digital Services Act after a similar investigation last year.
The probe is being opened under the Digital Services Act, a set of EU rules governing online services. The Commission will examine how Shein drives engagement with shoppers, including using a points and rewards system, and whether the company is properly mitigating the risk of addiction via these and other features.
Algorithmic recommendation systems are another point of contention, and the Commission will ask Shein to disclose how it suggests products to users. It also says that the company must offer users a system that is not based on profiling.
The Singapore-based company has faced a great deal of scrutiny in past years on a number of fronts, including its labor practices, materials sourcing, data practices and IP infringement. Last year the Texas Attorney General opened a probe into the company’s safety and labor practices amid allegations that Shein uses forced labor as well as toxic or hazardous materials.
Addictive design has been a recent priority for European regulators, with the Commission demanding that TikTok make changes to its platform after a similar probe concluded earlier this month. Algorithms have also been in focus, with the Commission recently launching a probe into how exactly X’s recommendation algorithm works.
The regulatory body will now continue collecting evidence in the matter, and holds the authority within the EU to levy fines and demand changes should the platform wish to continue operations in the region.
This article originally appeared on Engadget at https://www.engadget.com/general/europe-probes-sheins-addictive-app-design-and-illegal-product-sales-125322191.html?src=rss
