The European Commission announced last week (17 February 2026) that it has opened formal proceedings against fast-fashion e-commerce platform, Shein, under the Digital Services Act ("DSA"). The proceedings relate to Shein's (1) addictive design (such as rewards for engagement), (2) lack of transparency of the recommender system used to propose content and products to users, and (3) sale of illegal products.
In April 2024, Shein was designated a Very Large Online Platform ("VLOP") under the DSA as it exceeded the threshold of more than 45 million users per month in the EU. VLOPs are subject to the full force of the DSA's wide-reaching obligations, including the most onerous requirements, due to their potential reach and influence in the EU. These additional obligations include mitigation measures against risks such as the listing and sale of counterfeit goods or goods which infringe third party intellectual property rights, enhanced consumer protection measures, and improved transparency and accountability.
These proceedings follow the European Commission's requests for information to Shein on 28 June 2024, 6 February 2025 and 26 November 2025 which sought information on Shein's compliance with the DSA, including in respect of their notice and takedown mechanism, presence of illegal content, and protection of minors. Furthermore, the European consumer group, BEUC, complained to the European Commission in 2025 about Shein's use of deceptive techniques ('dark patterns'), which they allege push consumers into purchasing more than originally intended, and fuel the environmental and societal problems caused by the fast fashion industry. These 'dark patterns' include fake discounts and pressure selling (such as "low stock" pop-ups). You can read more on the BEUC's complaint here.
The European Commission will now carry out an in-depth investigation into Shein, which may include further requests for information and monitoring of the website. If the investigation results in a non-compliance decision, it could result in Shein being fined up to 6% of its global annual turnover. This is not the first fast-fashion VLOP to be investigated by the European Commission, with Temu being preliminarily found to be in breach of the DSA in July 2025 for the sale of illegal products on its marketplace.
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy stated "In the EU, illegal products are prohibited – whether they are on a store shelf or on an online marketplace. The Digital Services Act keeps shoppers safe, protects their wellbeing and empowers them with information about the algorithms they are interacting with. We will assess whether Shein is respecting these rules and their responsibility."
