The European Commission has formally designated the Chinese e-commerce site as a very large platform under the European law on digital services, the Digital Services Act (DSA)
©PublicEye
They rise to 23Very large platform” (VLOP) designated by the European Commission under the Digital Services Act (DSA), i.e. those platforms and search engines that count more than 45 million active monthly users and that for this reason they are required to respect certain consumer protection regulations.
And so, right from the top of his over 45 million monthly users in the European Union aloneAlso Shein comes into the sights of Brussels and is called to get things sorted out. And we could say: finally.
Read also: “I found 3 used socks from a child in my Shein package”, hidden messages for help from fast fashion workers?
The European Commission has in fact formally designated Chinese online fashion retailer Shein as a very large platform. For this reason, the ultra fast fashion giant will have to comply with the most stringent standards provided by the DSA within four months of its notification (i.e. by the end of August 2024), such as:
- the obligation to take specific measures to empower and protect online users, including minors
- duly assess and mitigate any systemic risks arising from their services
What changes for consumers
More specifically, these additional obligations include:
- Product surveillance illegal: Shein will be required to analyze diligently the specific systemic risks related to the spread of illegal content and products and put in place mitigation measures to address risks, such as the listing and sale of counterfeit goods, unsafe products and items that infringe intellectual property rights (Oakley and Ralph Lauren, for example, had sued Shein for violating their intellectual property rights.)
- For this he will have to report to the Commission once a year, the first time in 4 months. In the report, Europe will have to find evaluations on the “negative effects on the health of the products sold and on the safety of consumers, with particular attention to the physical and mental well-being of users minors”
- Shein is also required to structure its platform, including user interfaces, algorithms recommendations and terms of service, to mitigate and prevent risks to consumer safety and well-being
- Worker exploitation: Additional DSA requirements related to transparency reports and audits could allow us to better understand how Shein’s business works and reveal other possible dark sides of the supply chain
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