Online Retailer Shein Is Latest To Face Strict European Union Digital Regulations

LONDON —Shein, an online fast-fashion retailer, has been placed on the European Union’s list of major platforms that require heightened examination. This will subject the company to the bloc’s most stringent digital restrictions.

The European Union’s Executive Commission has officially categorized Shein as a “very large online platform” by the Digital Services Act, a comprehensive set of regulations aimed at improving the safety of online platforms and protecting internet users.

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Online Retailer Shein Is Latest To Face Strict European Union Digital Regulations

Shein is an affordable e-commerce company that originated in China but is currently headquartered in Singapore. Its primary means of reaching clients is through its application. The corporation committed to actively collaborating to establish a secure and lawful environment for our online community.

Leonard Lin, Shein’s worldwide head of public relations, agreed with the Commission’s goal of providing European Union consumers with a secure online shopping experience. He affirmed Shein’s dedication to contributing to this objective. “We also have a shared dedication to the fundamental values of openness and responsibility that form the foundation of the DSA.”

Shein has grown rapidly in the Western market by providing affordable clothing and household products, focusing on younger women. This has been achieved through collaborations with online influencers and celebrities on social media platforms.

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Online Retailer Shein Is Latest To Face Strict European Union Digital Regulations

With its user base exceeding 45 million in Europe, Shein is obligated to comply with the most rigorous regulations by August. The company implements efforts to safeguard online users and addresses and reduces any potential “systemic risks” associated with its services, such as restricting the sale of unlawful or counterfeit items.

According to the Commission, Shein is required to modify its user interfaces and recommendation algorithms to mitigate any potential dangers to customers’ safety and well-being. Additionally, Shein must submit annual risk assessment reports that evaluate the potential harm to consumers, focusing on youngsters.

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Online Retailer Shein Is Latest To Face Strict European Union Digital Regulations

The European Union has already included 22 prominent technology companies, such as Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search, on its roster of major online services that require the highest level of oversight since the implementation of the Digital Services Act (DSA) last year.

Other online services operating in the European Union are not exempt and must adhere to the law’s main criteria. Infractions can result in penalties of up to 6% of a corporation’s yearly global income.

SOURCE – (AP)