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Shein Faces EU Regulations Over User Data

By  |  April 28, 2024
Shein Likely to Go Public in US Later This Year

Chinese-founded retailer Shein is set to fall under the European Union’s online content regulations. The European Commission announced on Friday that Shein’s growing user base has now taken it into the category of “very large online platforms” (VLOPs), subjecting it to the provisions outlined in the Digital Services Act (DSA).

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    According to the DSA, companies who have more than 45 million users are classified as VLOPs, mandating heightened efforts to combat illegal content, harmful materials, and counterfeit goods on their platforms. Reuters reported that Shein, renowned for its rapid growth and trendy apparel, recently disclosed an impressive 108 million monthly active users within the EU alone.

    The European Commission outlined the timeline for compliance, stipulating that Shein must meet the most stringent DSA regulations within four months of notification, effectively setting a deadline for the end of August 2024.

    Obligations imposed by the DSA go beyond mere content moderation. VLOPs are tasked with implementing tailored measures to safeguard users, particularly minors, and to identify and address systemic risks associated with their services.

    Shein responded to the announcement by expressing its commitment to complying with the EU’s regulatory framework. Leonard Lin, the global head of public affairs at Shein, said the company was dedicated to supporting the Commission’s objectives and ensuring a secure online shopping experience for European consumers.

    “We share the Commission’s ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part,” remarked Lin in a statement underscoring Shein’s pledge to uphold regulatory standards and foster trust within its vast user base.

    Shein’s designation as a VLOPs marks a remarkable moment in the intersection of fast-fashion and regulatory oversight, highlighting the growing need for digital platforms to assume greater responsibility in combating online hazards and protecting consumer interests.

    Source: Reuters