KUALA LUMPUR – The European Commission has ordered controversial online shopping giants Shein and Temu to state their adherence to the European Union’s Digital Services Act (DSA), including its measures to protect children.
The commission’s enforcement action against the Chinese-founded platforms will require both marketplaces to provide the requested information by July 12, following which the commission will assess whether it will initiate formal proceedings under Article 66 of the DSA.
Among the details sought by the commission, it said in a statement today, relate to the platforms’ protection of minors, the transparency of recommender systems, the traceability of trades and compliance by designs.
It is also seeking information on measures the companies, which are both designated as “very large online platforms”, have taken to comply with DSA obligations relating to their “notice and action mechanism” allowing users to notify illegal products.
Additionally, the commission is looking into the platforms’ online interfaces, which should be designed in a way that “does not deceive or manipulate users via so-called dark patterns”.
“Pursuant to Article 74(2) of the DSA, the commission can impose fines for incorrect, incomplete or misleading information in response to a request for information.
“In case of failure to reply, the commission may decide to request the information by decision. In this case, failure to reply by the deadline could lead to the imposition of periodic penalty payments.”
It added that Shein and Temu have four months from their designation as “very large online platforms” to comply with “more stringent” rules under the DSA, particularly the requirement to duly assess and mitigate any systematic risks stemming from their services.
This, it said, includes the dissemination of unsafe and counterfeited products.
The commission added that its request for information is based on a complaint it received from consumer organisations.
In May, the European Consumer Organisation filed a complaint against Temu with the commission, accusing the app of using “manipulative techniques”.
Previously, the Seoul city government revealed that children’s products sold by Shein contain high levels of toxic chemicals, leading to the city’s authorities initiating safety inspections amid escalating concerns regarding the platform’s products.
While it was hailed as the world’s most popular fashion brand by Time magazine last year, Shein has faced criticism and controversy over various issues, such as the environmental impact of fast fashion practices and alleged child labour practices.
In March, it was reported that EU regulators have launched investigations into major US tech giants, including Apple, Google, and Meta, under the newly enacted Digital Markets Act, which operates alongside the DSA.
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