Brussels has escalated its regulatory campaign against the world of ultra-fast fashion. The executive arm opened formal proceedings against Shein under the Digital Services Act today. Investigators are now scrutinising whether the firm’s legal architecture is as flimsy as some of its fabrics.
The Commission announced the formal probe, focusing on multiple troubling areas of the platform’s operations, on 17 February 2026. The move targets a company that has become a household name by selling inexpensive clothes at high speed. Above all, officials are to examine the systems Shein uses to limit the sale of illegal products in the European Union.
No to underage sex dolls
This includes content which could constitute child sexual abuse material, such as child-like sex dolls. Regulators also worry about the addictive design of the service. They point to the use of points or rewards for engagement as potential risks to the wellbeing of users.
Brussels is equally concerned with the lack of transparency regarding the algorithms that dictate what shoppers see. Under the Digital Services Act, Shein must disclose the main parameters used in its recommender systems. It must also provide users with at least one easily accessible option that is not based on profiling.
Commission Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen made the position of the executive clear. “In the EU, illegal products are prohibited,“ she said, underlining the first principle of a product being illegal, “whether they are on a store shelf or on an online marketplace.“
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The digital safety net
The opening of these proceedings follows months of preliminary skirmishing. The Commission sent formal requests for information to Shein in June 2024, February 2025, and November 2025. These inquiries sought details on the protection of minors and the company’s risk assessment reports. Because Shein reports more than 145 million monthly users in the European Union, it is classified as a Very Large Online Platform. This status carries the most stringent legal obligations for risk management and transparency.
Coimisiún na Meán, the Irish regulator, will assist the Commission in its work. Ireland is the country where Shein has established its European base. The investigation is now a matter of priority, though the Commission notes that the opening of proceedings does not prejudge the final outcome. The duration of the inquiry remains uncertain. It depends on the complexity of the case and the extent to which the company cooperates with the authorities.
Ms Virkkunen emphasised the broader protective goals of the legislation during the announcement. The Digital Services Act keeps shoppers safe, protects their well-being and empowers them with information about the algorithms they are interacting with. “We will assess whether Shein is respecting these rules and their responsibility,“ she said.
Shopping for compliance
If the company is found to be in breach, the financial consequences could be severe. Penalties under the act can reach six per cent of global revenue (which, in Shein’s case, reached $37–$38bn in 2024).
The case against Shein sits alongside a wider enforcement pattern targeting fast-growing marketplaces. In July 2025, the Commission issued preliminary findings against Temu for failing to police illegal products like unsafe toys. Regulators even raided the Dublin headquarters of Temu in December 2025 to investigate foreign subsidies. Even Amazon has faced scrutiny, though the focus there has shifted more toward tax compliance and the role of platforms as tax-collection intermediaries.
In the EU, illegal products are prohibited. — Henna Virkkunen, EU Commission Vice-President for tech
Consumer groups have been vocal about the harms they perceive on Shein’s platform. The consumer group BEUC has previously filed complaints regarding dark patterns such as infinite scroll and confirm-shaming. These tactics are designed to push shoppers into over-consuming.
A tax on speed
Such practices may breach horizontal consumer laws, including the Unfair Commercial Practices Directive and the Price Indication Directive. A joint action in May 2025 already concluded that Shein’s on-site practices violated several EU consumer rules.
The legal pressure extends beyond digital design to the physical reality of the supply chain. The upcoming Corporate Sustainability Due Diligence Directive will soon force large firms to mitigate human-rights harms in their production lines. Investigations have already linked some suppliers to excessive overtime and low pay. In 2025, a product safety sweep focused on childcare articles also highlighted the risks of non-compliant goods entering the market through online portals.
Revenue protection is another pillar of the regulatory effort. The European Union has recently scrapped the low-value import exemption that previously allowed cheap parcels to enter without tax. New reforms, known as VAT in the Digital Age, make marketplaces the deemed suppliers for many cross-border sales. This shift ensures that retailers like Shein cannot easily bypass the fiscal requirements that domestic shops must meet. Enhanced VAT systems reportedly yielded more than €33bn in 2024.
Ban on vagueness
Strategic autonomy and environmental goals also play their part in this drama. The Green Claims Directive will soon ban vague eco-marketing, targeting labels like eco-friendly unless they are verified. Meanwhile, Extended Producer Responsibility schemes will force apparel brands to pay for the waste they create. For a business model built on ultra-cheap and ultra-fast production, these compliance costs represent a fundamental challenge to the bottom line.
The Commission now has the power to take further enforcement steps as the investigation continues. This could include interim measures or the adoption of a non-compliance decision. It can also accept commitments from Shein to remedy the problems discovered.
As Brussels weaves its new web of consumer, tax, and environmental rules, the era of unregulated digital bazaars appears to be drawing to a close. Whether Shein can adapt its model to meet these European standards remains the central question for the retail sector.
