European Commission’s announcement on 17 February that it would launch proceedings against the Chinese fashion giant Shein may serve as a key test case for the Digital Services Act (DSA). The European Commission designated Shein a “Very Large Online Platform” (VLOP) in the spring of 2024, after its monthly user base in the EU exceeded 45 million. According to some estimates, however, the actual number may be significantly higher. This designation is not merely a label; it entails extensive transparency and duty of care obligations, similar to those imposed on government agencies.
Shein has become the subject of growing controversy. Consumer protection authorities in several countries are investigating the company for potential legal violations. The Commission’s proceedings – which focus on the protection of children’s physical and mental well-being as well as the opacity of recommendation algorithms – raise broader constitutional questions relating to consumer protection and fundamental rights.
The recently announced inquiry goes beyond mere investigation: given the gravity and nature of the allegations, this could set a precedent. The launch of this proceeding is not without precedent; however, while earlier controversies surrounding Shein primarily concerned copyright infringement or environmental sustainability, the current investigation focuses on the safety of minors. Products have appeared on the platform whose sale may violate not only ethical standards but also serious criminal law provisions. According to reports, Shein offered for sale child-like sex dolls. This case highlights the systemic failure of content moderation. If the algorithms and moderation team of a global platform are unable to filter content of this nature – content that violates some of society’s most fundamental taboos – serious questions arise regarding the platform’s suitability to operate in the European digital space.
According to the European Commission, the issue is not an isolated error but rather a flaw in the platform’s risk management system. In line with the spirit of the Digital Services Act, platforms can no longer present themselves as merely neutral intermediaries; in the case of Very Large Online Platforms, this approach has become obsolete. If their system allows such products to appear – and if recommendation algorithms may even amplify their visibility to users – this may constitute a serious breach of their duty of care.
Another aspect of the investigation concerns criticism of the platform's architecture. Shein is alleged to deliberately employ so-called “dark patterns” designed to psychologically manipulate users and foster shopping addiction. Limited-time offers, countdown timers, “only 2 left” pressure tactics, and gamified features such as point collection with a wheel-of-fortune all rely on psychological tricks that bypass rational decision-making and promote dopamine-driven impulse buying.
This raises the broader question of where the line should be drawn between legitimate marketing practices and prohibited manipulation. In contemporary constitutional thought, the right to self-determination also encompasses the right of individuals to make decisions free from undue influence – or at least with full awareness of such influence. The European Commission takes the view that these practices pose a systemic risk, particularly for minors, which requires protection at the constitutional level. The developing nervous systems of children and teenagers are significantly more vulnerable to these manipulative techniques, therefore, “designed addiction” can be understood not merely as a business tactic, but also as a threat to mental health.
During the proceedings, Shein will have the opportunity to demonstrate that it has complied with the requirements of DSA. At the same time, however, this case is unlikely to remain an isolated one. The Commission’s action may send a clear message to other platforms to change their own practices.
Ultimately, what is at stake in the Shein case is whether the minimum standards taken for granted in the physical world – particularly the protection of children – will also be enforced in the digital realm.
