EU Investigates Shein Under Digital Services Act

EC Digital Strategy News (AI Act)

Filed February 18th, 2026

Detected February 20th, 2026

Summary

The European Commission has opened formal proceedings against Shein under the Digital Services Act. The investigation will focus on the sale of illegal products, addictive design features, and the transparency of recommender systems. This action follows concerns about potential violations of EU digital regulations.

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What changed

The European Commission has formally opened proceedings against Shein, a major online retailer, under the Digital Services Act (DSA). This investigation targets Shein's alleged sale of illegal products, including child sexual abuse material, the use of addictive design features that may negatively impact user well-being, and a lack of transparency regarding its product recommender systems. The DSA mandates that very large online platforms disclose parameters for their recommender systems and offer non-profiling options to users.

This action signifies a critical enforcement step under the DSA, requiring Shein to address these serious allegations. While no specific compliance deadline or penalty amount is detailed in this announcement, the company is expected to cooperate fully with the Commission's investigation. Failure to comply with the DSA can result in significant fines, up to 6% of the company's global annual turnover, and potential market restrictions within the EU. Regulated entities, particularly online platforms, should review their compliance with the DSA concerning illegal content, recommender system transparency, and user engagement design.

What to do next

Review Shein's compliance with the Digital Services Act regarding illegal product sales.
Assess the design of recommender systems for transparency and user options.
Evaluate engagement features for potential addictive design elements and mitigation strategies.

Penalties

Potential fines up to 6% of global annual turnover for non-compliance with the Digital Services Act.

Source document (simplified)

The European Commission has opened formal proceedings against Shein, under the Digital Services Act, for its addictive design, the lack of transparency of recommender systems, as well as the sale of illegal products, including child sexual abuse material.

More specifically, the investigation will focus on the following areas:

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.
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. Addictive features could have a negative impact on users' wellbeing and consumer protection online.
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.
Read the full press release and find further information about the:
Digital Services Act - main aspects of the regulation
User rights under the Digital Services Act - an overview
Supervision of the designated very large online platforms and search engines under DSA