Berliner Boersenzeitung - EU investigates Shein over sale of childlike sex dolls

Shein came under greater scrutiny in November after French authorities condemned the giant for featuring sex dolls resembling children.

The probe is the European Commission's first into Shein under the Digital Services Act (DSA), the EU's mammoth law that aims to counter the spread of illegal content and goods online.

The European Commission said it was investigating the sale of illegal products "including child sexual abuse material" and would look at the "lack of transparency" of Shein's recommender systems.

Shein, founded in China in 2012 but now based in Singapore, said it would continue to cooperate with the commission.

"We share the commission's objective of ensuring a safe and trusted online environment and will continue to engage constructively on this procedure," Shein said in a statement.

Following the uproar in France, Shein said it immediately removed the products and banned sex dolls from its site globally regardless of appearance.

Shein is among more than 20 "very large" online platforms that must comply with the DSA or risk fines that could reach as high as six percent of their global turnover, or even a ban for serious and repeated violations.

- 'Addictive features' -

The EU said its investigation would focus on the systems Shein has in place to prevent the sale of illegal products in the 27-country bloc.

The products also include weapons as well as toys, clothing, cosmetics and electronics that are unsafe or not compliant with EU rules.

Regulators said they were also looking into the risks linked to the platform's "addictive design", such as giving consumers points or rewards for engagement.

"Addictive features could have a negative impact on users' wellbeing and consumer protection online," the commission said.

"We have a suspicion Shein underestimated (this) in the risk assessment and also didn't put proportionate measures in place to tackle this particular risk," an EU official said.

Brussels also wants to know details about the algorithms used by platforms to feed users more personalised content.

But the commission said the "opening of formal proceedings does not prejudge its outcome" and there is no deadline for the probe's completion.

Shein can now offer commitments to try to satisfy the EU's concerns.

The company said it had already invested significantly in measures to adhere to the DSA.

There are currently other DSA probes into the Chinese online retailer AliExpress and the social media platforms Facebook, Instagram, X and TikTok.

The EU this month told TikTok it needed to change its "addictive" design.

The EU has faced criticism for the DSA investigations into US tech giants from President Donald Trump's administration, which says it is a tool of "censorship".

(G.Gruner--BBZ)