Shein is designated as a large platform and subject to more rigorous rules
The European Commission has recognized Shein, the online clothing store, as a large platform due to its large monthly user base in the European Union, which exceeds 45 million. This designation means that Shein will be subject to stricter operating rules in accordance with the Digital Services Act (DSA).
Platforms subject to greater control and risk mitigation measures
Large platforms, such as Google, Amazon, Wikipedia, Twitter, Zalando or Pornhub, are subject to greater control and the imposition of a series of measures to mitigate risks to users, under the premise that what is illegal offline is also illegal. It’s online.
Deadline and consequences for Shein
Brussels has given Shein a period of four months, until the end of August, to adjust its operating rules to European legislation. Failure to comply with these regulations could result in penalties of up to 6% of your global turnover.
Measures that Shein must implement
Among the measures that Shein must implement is the control of the dissemination of illicit content and products, as well as the evaluation and mitigation of systemic risks derived from its activity. In addition, the company will have to submit risk assessment reports to the European Commission and take mitigation measures to address risks, such as the sale of counterfeit, unsafe or intellectual property rights infringing products.
Consumer protection and transparency
The DSA focuses on consumer protection, so Shein must carry out annual risk assessment reports to guarantee the safety and well-being of users, especially minors. Likewise, the company must reinforce transparency and accountability by publishing all advertisements on its interface and submitting to external audits regarding compliance with European legislation.
DSA Impact on Other Platforms
The recently implemented DSA has led the EU to launch investigations into other large platforms such as X (formerly Twitter) or TikTok, due to the risks they pose to consumers. In the case of TikTok, Brussels even threatened to suspend its Lite version in Spain and France due to its rewards system considered ‘toxic and dangerous’.
