European Union: Implemented the additional obligations for Shein as Very Large Online Platform under the Digital Services Act

On 27 August 2024, the additional obligations for Shein as a Very Large Online Platform under the Digital Services Act (DSA) came into force. Shein is required to implement several measures to enhance its surveillance of illegal products and ensure enhanced consumer protection, which is in line with its obligations under the DSA. The company must analyse and report systemic risks related to the dissemination of illegal content and products from its service design and operation. Initial risk assessment reports are due to the Commission four months after formal designation, with annual updates thereafter. To mitigate these risks, Shein is mandated to adapt its terms of service, improve user interfaces for better detection and reporting of suspicious listings, enhance moderation processes for removal of illegal items, and refine algorithms to prevent the sale and promotion of prohibited goods. Additionally, the company must strengthen its internal processes and resources related to detecting systemic risks. Consumer protection measures require Shein to annually assess potential adverse effects on consumer health and safety, focusing particularly on underage users. The platform must incorporate age verification systems to restrict the purchase of age-restricted items and must structure its operations to prevent the sale of unsafe or illegal products. Furthermore, Shein is expected to maintain transparency and accountability through external, independent audits, biannual transparency reports on content moderation, and annual reports on systemic risks and audit results. The company must also provide access to ad repositories and publicly available data to vetted researchers, ensuring ongoing compliance and oversight.