The European Union has added Shein, a fast-fashion retailer, to its list of very large online platforms (VLOPs) that fall under the highest level of scrutiny under the Digital Services Act (DSA). This move comes as part of the EU’s efforts to regulate online platforms and ensure user safety.
Shein, which has over 45 million European users, must now comply with specific measures to protect users and address systemic risks. These include preventing the sale of illegal or counterfeit products, adjusting user interfaces to mitigate consumer risks, and conducting annual risk assessments.
The DSA, which came into effect last year, aims to create a safer and more accountable online environment. It applies to a range of online services, including social media platforms, search engines, and online marketplaces.
Shein joins a list of 22 other tech giants, including Google Search, Instagram, and Amazon, that are subject to the toughest tier of supervision under the DSA. These companies are required to take proactive measures to address risks and protect users.
Failure to comply with the DSA can result in significant fines of up to 6% of a company’s annual worldwide revenue. The EU’s move to regulate Shein and other online platforms demonstrates its commitment to ensuring a safer and fairer digital landscape.
