Shein in talks with EU over online content rules

The European Commission on Friday said that it is in talks with China’s Shein over its recently reported user numbers that would make the ultra-fast fashion online retailer fall under tough EU online content rules.

Under the EU’s Digital Services Act, designated platforms with more than 45 million users in the EU (10 per cent of the EU’s population) are classed as Very large online platforms (VLOPs) and are subject to stringent rules such as establishing an internal compliance function that ensures that the risks identified are mitigated; agreeing to be audited by an independent auditor at least once a year and adopt measures that respond to the auditor’s recommendations; and sharing data with the commission and national authorities so that they can monitor and assess compliance with the DSA.

Firms found to be in violation of the DSA could be fined up to six per cent of their global annual turnover.

In a statement, a spokesperson for the European Commission said: "We are aware of Shein's statement of having 108 million monthly active users in the EU and are in contact with the platform in view of a possible designation in the future. The procedure is ongoing but a timetable cannot be indicated."

Other online retailers already subject to the classification include AliExpress and Amazon, which has filed a legal challenge which brands the DSA criteria as “discriminatory”. German retailer Zalando has filed a similar complaint.

In comments to Bloomberg, a spokesperson for Shein said: “We are in regular and constructive dialogue with the European Commission to ensure continued compliance with EU laws and regulations.”



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