EU tightens safety rules for online retailer Shein

Brussels, Belgium:

The European Union on Friday added Chinese-founded online retailer Shein to its list of digital companies that are big enough to come under tough security restrictions.

The company joins Facebook, TikTok, Xx, YouTube and others on the list of “very large online platforms” that have more than 45 million monthly active users in the EU.

From the end of August – four months after the designation – Sheen will have to comply with strict rules set out in the Digital Services Act (DSA), one of the EU’s landmark laws against online platforms.

“Implementing measures to protect consumers from purchasing unsafe or illegal goods, including focusing in particular on preventing the sale and distribution of products that may be harmful to minors,” the European Commission said.

Shein, which is headquartered in Singapore, said it has about 108 million monthly active users in the 27-nation European Union.

Responding to the announcement, Sheen said she would follow the rules.

Leonard Lynn, global head of public affairs at Shein, said: “We share the Commission’s ambition to ensure that consumers in the EU can shop online with peace of mind, and we are committed to playing our part “

Beyond the European Union, Shein has faced criticism over alleged exploitation of low-paid factory workers and arguments that it promotes hyperconsumerism and harms the environment.

EU investigation

Brussels has stepped up its legal powers against the world’s biggest digital platforms and launched investigations into TikTok, X and Chinese retailer AliExpress.

Teemu, another Chinese shopping app, is expected to be added to the EU list after announcing in April that it had nearly 75 million monthly active users after entering the EU market a year ago.

Under the DSA, platforms must assess the specific risks posed to the rights and safety of Europeans by the content they publish – or products on sale in the case of online marketplaces like Amazon and Shein – and submit a report to regulators.

They must also provide an external audit once a year to verify compliance.

The largest platforms are also subject to enhanced transparency requirements, including the obligation to provide access to their data to researchers approved by Brussels.

The European Union has taken tough action against companies linked to China in recent months.

Popular video sharing app TikTok, owned by China’s ByteDance, has faced intense scrutiny in the EU and beyond.

While it faces a ban in the United States, TikTok is the subject of two investigations by the European Commission over alleged harm to minors.

TikTok suspended its rewards program on its spinoff Lite app on Wednesday after the Commission launched an investigation into its potentially addictive features.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)