EU Holds E-commerce Titans Shein and Temu Accountable

The European Commission has demanded that Shein, an online fast-fashion retailer, provide internal documents and detailed information about illegal goods and consumer protection measures. This is part of a broader investigation under the Digital Services Act (DSA), which also involves Shein's rival, Temu. The move aims to address the proliferation of unsafe and low-value imports into the EU.

The European Commission has issued a demand for internal documents from Shein, a prominent online fast-fashion retailer, seeking detailed information on the potential risks of illegal goods on its platform. This request is part of the EU executive's efforts to enhance the trust and safety of European consumers shopping online.

Shein has been set a deadline of February 27 to disclose measures relating to consumer protection and public health, in compliance with the Digital Services Act (DSA). The Commission is scrutinizing Shein's transparency regarding recommender systems, data access for researchers, and the safeguarding of users' personal data.

The investigation extends to Shein's competitor, Temu, as the Commission intensifies its scrutiny on the influx of duty-free parcels from China. Concerns over unsafe products have prompted measures to address import regulations, with potential customs reforms anticipated by 2026.

(With inputs from agencies.)