EU says it takes Shein illegal product risks 'seriously'
BRUSSELS: The European Commission said on Thursday (Nov 6) it takes "very seriously" the risks from illegal products on Shein, as the online retail giant faces an uproar in France over the sale of childlike sex dolls.
Paris has urged Brussels to clamp down on the Chinese-founded platform, with the bloc's digital chief, Henna Virkkunen, to hold talks later in the day with French Minister Anne Le Henanff.
"The sale of childlike sex dolls is extremely concerning," EU digital spokesperson Thomas Regnier told reporters. "We do not want to see these products being offered to European citizens."
The European Commission is already investigating Shein for multiple suspected breaches of EU rules, including those related to the sale of illegal products.
Regnier said there was currently no plan to block access to Shein, and that under the bloc's Digital Services Act (DSA), such a step would be a "very last resort" to be taken by the member state hosting the platform.
In this case, the move would have to come from Ireland, where Shein has its EU headquarters.
"We're not there yet because the DSA is about proportionality, taking proportionate measures," Regnier stressed.
He added, however, that the commission was consulting with France to determine if the risks identified were of a "systemic" nature.
"In which case, the commission will not hesitate to take action," Regnier said.
The EU added Shein in April 2024 to its list of Very Large Online Platforms subject to tougher obligations under the DSA, a powerful law that forces tech giants to do more to protect European consumers online.
It has been looking since February this year into risks linked to illegal products on the site, a possible first step towards a formal investigation under the DSA.
In parallel, Brussels has launched a probe along with consumer authorities in several EU countries into practices by Shein that infringe the bloc's consumer laws, from fake discount deals to misleading product information.
Shein risks fines unless it tackles the concerns raised, which it has said it is working to do.
German retail industry group HDE also called on the German government and EU authorities to take a tougher stance against Shein.
"Violations of laws and regulations must have consequences," HDE's managing director Stefan Genth told Reuters on Thursday.
Germany's state-backed products testing group Stiftung Warentest said last week that 110 out of 162 items it tested from Shein and rival online platform Temu did not meet EU standards, citing unsafe toys and toxic metals in jewellery.
The Commission has powers to investigate large online platforms for breaches of the EU's Digital Services Act, which requires they collect and verify information on third-party sellers and check their marketplaces for non-compliant products.
It can impose fines of up to 6 per cent of a company's global annual turnover for confirmed breaches.
Shein had global revenues of US$37 billion in 2024, according to parent company Roadget Business Pte Ltd's most recent filing in Singapore.
CHINESE ONLINE PLATFORMS UNDER SCRUTINY IN EUROPE
France's crackdown on Shein is about more than banned weapons and "pedopornographic" dolls.
With nearly 146 million monthly users in the EU according to its latest DSA transparency report, the platform has become a lightning rod for broader concerns over the increasing flow of cheap Chinese products into Europe's single market.
Shein and other platforms like Temu, AliExpress, and Amazon Haul send cheap products from Chinese factories directly to consumers without paying customs duties, as the EU waives these for ecommerce parcels under €150.
The EU plans to scrap the customs waiver in 2028, but France is pushing for faster action, including a €2 (US$2.33) fee on each low-value parcel.
In the meantime, the online retailers are under growing scrutiny.
Earlier this year, the Commission asked Shein to provide internal documents and information on risks linked to illegal goods and content on its marketplace.
The Commission is separately investigating Temu, owned by China's PDD Holdings, stating in its preliminary findings in July that the platform was not doing enough to prevent the sale of illegal products.
Separately, French prosecutors are investigating Shein, as well as Temu, AliExpress and Wish, for alleged rule breaches, including failing to prevent minors from accessing pornographic content via their marketplaces.
