Shein: EU’s Very Large Online Platform Gets Stricter Rules Amid Concerns Over Counterfeit Products and IP Violations

The Chinese online retailer Shein, which has become increasingly popular among European consumers for its affordable fashion items, is set to face stricter rules in the EU. As per the Digital Services Act (DSA), Shein has been classified as a very large online platform, subject to more stringent requirements. With over 45 million monthly users in the European Union, the company surpassed the threshold for classification as a very large online platform.

As a result of this classification, Shein will need to implement extensive measures to protect consumers. This includes combating counterfeit products and intellectual property rights violations. The company will also be required to submit annual risk assessment reports focusing on potential adverse effects on consumer health and security, particularly minors’ physical and mental well-being. These measures must be put in place by August 31st.

Shein is one of 23 major online services affected by the DSA’s requirements, which initially targeted 19 large online platforms such as Amazon and Zalando. Platforms like Pornhub and Stripchat were added in December. All these major online services must comply with the stricter regulations outlined in the Digital Services Act.

The EU Commission will closely monitor these platforms to ensure compliance with the new rules and protect consumers’ interests. The implementation of these regulations aims to create a safer and more secure online environment for European consumers participating in e-commerce activities.

In conclusion, Shein’s classification as a very large online platform under the Digital Services Act means that it will face stricter rules aimed at protecting consumers from counterfeit products and intellectual property rights violations, among other things. With over 45 million monthly users in Europe alone, it is crucial that Shein complies with these regulations before August 31st to maintain its reputation among customers while keeping them safe from potential harm or exploitation online.