Quick Read
- The EU has launched a formal investigation into Shein over suspected breaches of the Digital Services Act (DSA).
- The probe targets the sale of illegal products, including childlike sex dolls and weapons, on Shein’s platform.
- Concerns also include Shein’s ‘addictive design’ features like gamification and opaque recommender systems.
- Shein faces potential fines of up to 6% of its global annual revenue if found in violation of DSA rules.
- This investigation follows previous warnings and a French inquiry into illegal products sold on the site.
BRUSSELS (Azat TV) – The European Union has launched a formal investigation into the global online retailer Shein, citing multiple suspected breaches of the bloc’s Digital Services Act (DSA). Announced on Tuesday, February 17, 2026, the inquiry focuses on the platform’s alleged sale of illegal products, its “addictive design” features, and the opaque nature of its recommender systems, marking a significant escalation in regulatory scrutiny for the fast-growing company.
The European Commission initiated the probe after demanding information from Shein last year and concluding that despite the company’s assessment of being at ‘low risk,’ the EU believes Shein poses a ‘high risk’ of violating EU laws. This investigation follows earlier concerns raised by French authorities regarding the sale of illegal items, including childlike sex dolls and weapons, on the platform.
Shein Under Scrutiny for Illegal Products
A primary concern driving the EU’s investigation is the alleged widespread availability of illegal products on Shein’s platform. EU officials pointed to reports of clothes, cosmetics, and electronic products that do not comply with EU law, in addition to the highly controversial sale of childlike sex dolls and various weapons, including firearms, knives, and machetes. Justice Commissioner Michael McGrath previously expressed shock at the toxicity and danger of some products, citing instances of baby soothers that could cause choking and clothes containing banned chemicals.
While a Paris judicial court acknowledged a “serious harm to public order” in December, noting that Shein had removed the illegal products and issued an injunction for the company to implement age-verification measures, the EU’s probe is broader. A senior EU official clarified that the current investigation looks at Shein’s ‘system at large,’ rather than focusing solely on specific incidents, indicating a suspicion that Shein’s internal systems are not adequately built to prevent the sale of illicit goods across the entire European Union, according to The Guardian.
Concerns Over Shein’s Addictive Design and Transparency
Beyond illegal products, the investigation will delve into the “addictive design of the service Shein is providing.” This includes features such as bonus points programs, gamification, and rewards systems that, according to EU officials, “may lead to a risk of users’ mental well-being.” This marks the second such inquiry into the addictive design of an online retail platform, following an investigation launched into Chinese rival Temu in late 2024.
Furthermore, the EU is examining Shein’s recommender systems, which are designed to suggest products to users. Regulators are concerned that these systems are opaque and may not meet the transparency requirements of the Digital Services Act. The DSA mandates that recommender systems must ‘provide one easily available alternative which is not based on profiling’ and clearly explain how their recommendations work. The preliminary investigation found that Shein only explained its system “in a very general manner,” potentially overwhelming users with product suggestions without adequate transparency, as reported by Al Jazeera.
Previous Warnings and Potential Penalties for Shein
The formal investigation comes after months of escalating tensions and preliminary actions. In November 2025, the French government threatened to suspend Shein’s services after illegal products were found on the site, though a court later blocked a full suspension while requesting a broader EU investigation. The European Commission first requested information from Shein on its DSA compliance in April 2024.
Shein has stated that it takes its obligations under the DSA seriously and has consistently cooperated with the European Commission and Coimisiún na Meán, the Irish regulator leading this investigation. The company affirmed its commitment to continue this cooperation, adding that it has invested significantly in strengthening its DSA compliance through comprehensive systemic-risk assessments, mitigation frameworks, and enhanced protections for younger users, according to a statement reported by PBS NewsHour.
Under the DSA, companies found in violation can face substantial penalties, including fines of up to 6% of their annual global revenue. Based on Shein’s reported 2024 revenue of $37 billion, this could amount to fines as high as $2.2 billion, as highlighted by The Verge. While the EU stated that a complete ban on Shein selling in Europe remains a “last resort” option, it underscores the gravity of the investigation and the expectation for full compliance with European laws.
This formal investigation into Shein, part of a broader trend of DSA enforcement across major tech and e-commerce platforms, signals the EU’s firm commitment to holding online services accountable for content moderation, consumer safety, and algorithmic transparency, moving beyond individual product bans to scrutinize systemic operational practices.