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Under the EU Digital Regulations, Shein has joined tech giants like Facebook, Amazon, and Google in meeting the strict compliance standards set by the EU's Digital Services Act due to its user base surpassing 45 million in Europe.
Shein Reaches User Threshold, Triggers EU Digital Regulations
The European Commission announced on Friday that Shein, a fast-fashion company founded in China, will be required to adhere to stringent new EU online content regulations. The directive came after Shein's user count surpassed a significant threshold, joining many other large technology companies already obligated to comply with the rules.
According to the EU's Digital Services Act (DSA), companies with over 45 million users are considered large online platforms (VLOP). They must take additional measures to combat their platforms' dangerous and unlawful content and counterfeit goods.
A Reuters report stated that Shein must comply with the strictest rules by August because it has more than 45 million users in Europe. The retailer has four months to comply.
Some of these involve taking specific steps to protect online users and identifying and reducing any "systemic risks" associated with their services, such as stopping the sale of fake or illegal goods.
Exploring the Effects on Shein and Relations with Facebook, Google in EU Compliance
As per Channel News Asia, the commission further mandated that Shein modify its user interfaces and selection algorithms to safeguard consumers' health and safety. Additionally, the company was required to submit yearly risk assessment reports that analyze potential harm to consumers, with a particular focus on children.
Facebook, TikTok, YouTube, Instagram, Amazon, and Google Search are among the 22 tech companies that the EU has already enumerated as the most prominent online services requiring a particularly stringent level of oversight since the DSA went into effect a year ago.
The general criteria of the law still apply to other online services that operate within the EU. Penalties for infractions can reach 6% of a company's global yearly sales.
