Chinese-founded retail giant Shein is set to fall under the regulatory purview of the European Union’s stringent online content regulations. The European Commission announced on Friday that Shein’s burgeoning user base has propelled it into the realm of “very large online platforms” (VLOPs), subjecting it to the rigorous provisions outlined in the Digital Services Act (DSA).
According to the criteria laid out in the DSA, companies surpassing 45 million users are classified as VLOPs, mandating heightened efforts to combat illegal content, harmful materials, and counterfeit goods on their platforms. Reuters reported that Shein, renowned for its rapid growth and trendy apparel, recently disclosed an impressive 108 million monthly active users within the EU alone.
In response to Shein’s newfound designation, the European Commission outlined the timeline for compliance, stipulating that the company must adhere to the most stringent DSA regulations within four months of notification, effectively setting a deadline of the end of August 2024.
The obligations imposed by the DSA extend beyond mere content moderation. VLOPs are tasked with implementing tailored measures to safeguard users, particularly minors, and to identify and mitigate systemic risks associated with their services. Reuters highlighted that these mandates are aimed at fostering a safer online environment and promoting consumer confidence in digital transactions.
Shein, recognizing the significance of regulatory compliance and consumer protection, expressed its commitment to aligning with the EU’s regulatory framework. Leonard Lin, the global head of public affairs at Shein, articulated the company’s dedication to supporting the Commission’s objectives and ensuring a secure online shopping experience for European consumers.
“We share the Commission’s ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part,” remarked Lin in a statement underscoring Shein’s pledge to uphold regulatory standards and foster trust within its vast user base.
Shein’s integration into the realm of VLOPs marks a pivotal moment in the intersection of fast-fashion and regulatory oversight, highlighting the growing imperative for digital platforms to assume greater responsibility in combating online hazards and protecting consumer interests.
Source: Reuters