The European Commission has launched an investigation into Chinese online retail platform Shein over its addictive design and over the sale of illegal products, including child sexual abuse material such as child-like sex dolls.
In November, France's consumer watchdog reported Shein to authorities for selling sex dolls with a child-like appearance.
In response at the time, Shein said it would be banning the sale of all sex dolls on its site.
The investigation announced today by the European Commission is being launched under the Digital Services Act (DSA).
Irish media regulator Coimisiún na Meán will be involved in the inquiry as Shein has its European headquarters in Ireland.
The investigation will look at the systems Shein has in place to limit the sale of illegal products in the European Union, including content which could constitute child sexual abuse material, such as child-like sex dolls.
It will assess the risks linked to the addictive design of the service, including giving consumers points or rewards for engagement, as well as the systems Shein has in place to mitigate such risks.
The investigation will also look at the transparency of the recommender systems that Shein uses to propose content and products to users.
"Under the DSA, Shein must disclose the main parameters used in its recommender systems and it must provide users with at least one easily accessible option that is not based on profiling for each recommender system," the European Commission said.
After the formal opening of proceedings, the Commission said it will continue to gather evidence, for example by sending additional requests for information to Shein or third parties or conducting monitoring actions or interviews.
"In the EU, illegal products are prohibited - whether they are on a store shelf or on an online marketplace," said Henna Virkkunen, EU Commission Executive Vice-President for Tech Sovereignty, Security and Democracy.
"The Digital Services Act keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with," she said.
"We will assess whether Shein is respecting these rules and their responsibility," Ms Virkkunen said.
The Commission said its decision follows preliminary analyses of the risk assessment reports provided by Shein, replies to formal requests for information, as well as information shared by third parties.
The Commission added that the opening of an investigation does not prejudge its outcome or any other proceedings that it may decide to initiate.
In a statement, Shein said it takes it obligations under the Digital Services Act seriously and has always cooperated fully with the European Commission, as it will continue to do in this process.
"Over the last few months, we have continued to invest significantly in measures to strengthen our compliance with the DSA," the company said.
"These include comprehensive systemic-risk assessments and mitigation frameworks, enhanced protections for younger users and ongoing work to design our services in ways that promote a safe and trusted user experience," it stated.
"Following the issues identified last year, in addition to enhancement of detection tools, we also accelerated the rollout of additional safeguards around age-restricted products," it said.
"In particular, we have engaged with the Commission on the deployment of our age-assurance solution across the EU, using trusted third-party technology that balances compliance with both minor protection and privacy requirements," it added.
"Protecting minors and reducing the risk of harmful content and behaviours are central to how we develop and operate our platform," Shein said.
