The European Commission has classified Chinese online retailer Shein as a "very large platform" under the new Digital Services Act.
This implies that the discounted clothing platform will need to adhere to unique transparency rules, demonstrating its measures to protect consumers.
Shein therefore joins the ranks of 22 other platforms, including the likes of X (formerly Twitter), TikTok, Google, and Facebook, all of which are subject to strict European regulations, according to a Commission press release.
Shein, boasting an average of over 45 million monthly users in the European Union, certainly justifies its designation as a "very large platform". The fast fashion giant has until the end of August to conform to corresponding rules.
The specific rules for very large online platforms (VLOPs) mandate risk assessment reports concerning illegal products, such as counterfeit goods, and efforts to mitigate these risks along with any potential threats to consumer safety and well-being. Shein must also publish a report on this risk management twice a year.
