DSA: Shein added to list of “very large platforms”

The Chinese fast fashion giant will now have to comply with strict requirements, in regard to illegal products and content, and protection of minors.

On April 26, 2024, the European Commission announced it was now considering Shein, the Chinese online ready-to-wear fashion giant, a “very large platform,” as per the Digital Services Act. The fast fashion specialist already had to comply with DSA requirements for all online services. It now has until August 26, 2024, to comply with the stricter requirements reserved for “very large platforms.”

More specifically, Shein will have to:

analyze risks tied to the distribution of illegal content and products, and set up measures to mitigate the risks;
improve its user interface, moderation and algorithms, in order to better detect counterfeit or hazardous products, and better inform consumers as to the nature of the goods sold;
prevent “the sale and distribution of products likely to harm minors,” by integrating “robust age verification” measures for users.

Moreover, Shein will have to submit a report to the European Commission on the measures taken to this end, followed by another report every year. The Chinese platform has 108 million monthly users in the European Union, beyond the 45-million limit set by the DSA to distinguish “very large platforms”.

In the event of non-compliance with these rules, Shein exposes itself to a fine of up to 6% of its yearly global sales. Repeat offenses may lead to an EU-wide ban. “We share the Commission’s ambition to make sure EU consumers can shop online with total peace of mind, and we are committed to playing our part,” responded Leonard Lin, Shein’s head of public affairs.