Aditi Bharade

The EU is investigating Shein for ‘addictive,’ gamified service

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The European Union is going after Shein for hooking customers with what it calls “addictive design.”

In a press release on Tuesday, the European Commission announced that it had launched a probe into Shein under its Digital Services Act.

The Commission said it would investigate Shein for “addictive design, the lack of transparency of recommender systems, as well as the sale of illegal products, including child sexual abuse material.”

Shein’s platform is addictive because it uses points and rewards for engagement, the Commission said in the press release, which could jeopardize consumer well-being. Shein, a Chinese fast fashion brand, is headquartered in Singapore.

The Commission added in the release that it would investigate the systems that Shein has in place to limit the sale of illegal products in the European Union, such as “child-like sex dolls.”

The probe comes after the French government tried to have Shein’s website suspended in the country last year after reports of sex doll listings on the site.

Reuters reported in December that a Paris court had rejected the suspension and ordered Shein to implement age verification for adult products and impose a fine for any breach.

This is not the first time the EU has taken action against Shein for its marketing tactics.

In May, the bloc accused the company of deceiving customers with fake discounts and misleading information, failing to process refunds, and hiding the contact information of customer service agents, which it called a “breach of EU law.”

Shein has also been the subject of probes by other countries. South Korean authorities found toxic substances in quantities above legal limits in Shein’s products on numerous occasions.

And in December, a Texas court said it would investigate Shein for “unethical labor practices and the sale of unsafe consumer products.”

“Any company that cuts corners on labor standards or product safety, especially those operating in foreign nations like China, will be held accountable,” Texas Attorney General Ken Paxton said in a press release.

Representatives for Shein did not respond to a request for comment from Business Insider.




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Shein faces Texas probe into materials, labor, and data privacy

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Texas has launched a probe into Shein, accusing it of selling unsafe, toxic products to US consumers.

Texas Attorney General Ken Paxton said in a Monday news release that his office was investigating the fast-fashion giant for potential violations of Texas law, “related to unethical labor practices and the sale of unsafe consumer products.”

Paxton referenced Health Secretary Robert F. Kennedy Jr.’s “Make America Healthy Again” campaign in the release, saying that safe and non-toxic products were a key ingredient in the movement.

“Any company that cuts corners on labor standards or product safety, especially those operating in foreign nations like China, will be held accountable,” Paxton said in the release.

Shein is headquartered in Singapore and sources many of its products from China.

“Texans deserve to know that the companies they buy from are ethical, safe, transparent, and not exploiting workers or selling harmful products. I will not allow cheap, dangerous, foreign goods to flood America and jeopardize our health,” Paxton said.

The release said that the investigation will also examine Shein’s data collection and privacy practices.

Representatives for Shein did not respond to a request for comment about the Texas investigation from Business Insider.

This is the latest setback that Shein is facing in the US, its largest market.

Since the start of President Donald Trump’s second term, his administration has cracked down on the de minimis trade loophole, which previously allowed low-cost parcels to enter the country tax-free. Shein said in April that it would raise prices to account for higher operating expenses, a result of changes in trade laws.

Paxton, who is running for Senate in 2026, is not the first government official globally to launch a probe into Shein.

South Korean health officials raised concerns several times last year about Shein’s products containing toxic substances above legal limits. In response to the probes, Shein told Singaporean outlet The Straits Times in June 2024 that it had removed the offending products from its catalogue.

In May, the European Commission said it had investigated Shein’s practices and found that the company had breached EU law by offering fake discounts, using deceptive product labels, and making misleading sustainability claims.

Shein also came under fire in France in early November for selling childlike sex dolls and illegal weapons on its third-party marketplace in the country, per a Reuters report. France suspended the marketplace shortly after.

The European Commission said on Wednesday that it had sent a request to Shein to provide evidence that it would not expose minors to inappropriate content and that it would prevent the circulation of illegal products.

A Shein spokesperson told Politico that the company had received the request and was “working to promptly address it.”




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