Shein could be classified as a very large online platform (VLOP) under the DSA, thereby necessitating stricter content moderation.
The European Commission (EC) is in discussions with Chinese-founded fast-fashion retailer Shein regarding the company’s compliance with the European Union’s (EU) Digital Services Act (DSA).
The DSA came into force in November 2022, aiming to ensure a safe, predictable, and trustworthy online environment within the EU, fostering innovation while upholding fundamental rights, including consumer protection.
The talks with Shein came in response to reports of a significant growth of users of the platform in the region.
The retailer, which is considering a US initial public offering, could be classified as a very large online platform (VLOP) under the DSA, necessitating stricter content moderation.
Between 1 August 2023 and 31 January 2024, Shein reported 108 million monthly active users in the EU member states.
The DA requires platforms with more than 45 million users to implement more robust measures against illegal content, harmful material and counterfeit goods.
A European Commission spokesperson quoted by Reuters as saying: “(We) are in contact with the platform in view of a possible designation in the future. The procedure is ongoing but a timetable cannot be indicated.”
All online platforms have been subject to the DSA since 17 February 2024.
16 technology companies, including the six designated gatekeepers Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft, are required to comply with all DSA obligations.
These companies have been requested by the EU to provide details on their efforts to combat illegal online content and goods.
In February 2024, Shein announced the opening of a new office in downtown Bellevue, Seattle, marking a significant expansion of its US presence.
Source from Retail Insight Network
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