EU opens formal investigation into Shein over illegal product sales
The European Commission has formally opened an investigation into Shein, the fast-fashion giant, over alleged breaches of digital law including the sale of illegal products like child-like sex dolls. This action under the EU's Digital Services Act (DSA) targets Shein's systems for addictive design, lack of transparency in recommender algorithms, and failure to prevent illegal content sales. The probe follows French authorities' 2025 report about Shein selling sex dolls with childlike appearances, which the company removed and banned globally while cooperating with investigations. The EU may impose fines up to 6% of Shein's $38 billion 2024 global sales. This step underscores the EU's increasing regulatory pressure on online platforms to protect consumers and minors, following similar actions against TikTok and Meta platforms.