New EU Regulations Target Shein Fashion Counterfeit Problem

The fast-fashion company reported having more than 45 million average monthly users in the EU, earning it the designation of a “very large online platform” (VLOP). The label applies to the largest technology companies such as Amazon, AliExpress, Meta and TikTok and requires them to comply with rules on content moderation and user privacy and security. In February, the European Commission approved more general rules that apply to all but the smallest platforms.

The European Commission specifically noted new requirements for Shein around illegal products on its website. The company will have four months to submit a risk assessment report and will have to introduce mitigation measures against “the listing and sale of counterfeit products, unsafe products and items that infringe intellectual property rights”.

Shein, which sells its own products and acts as a marketplace for third-party sellers, has been plagued by allegations of counterfeits and copyright infringements. Artists accused Shein of stealing your work to create productsand brands like Oakley and Ralph Lauren sued Shein for violating their intellectual property rights.

In response to a request for comment, Shein directed On the edge for an affirmation from Leonard Lin, global head of public relations, saying in part that the company “shares[s] the Commission’s ambition to ensure that consumers in the EU can shop online with peace of mind and we are committed to playing our part.”

Other DSA requirements regarding transparency reporting and audits could give the public insight into Shein’s business that we have not previously obtained. In addition to allegations of counterfeit or infringing products on the platform, Shein’s supply chain has come under scrutiny, particularly surrounding the working conditions of the people who make the $15 dresses and $3 t-shirts. workers were subject to illegal long hours and other labor violations, and The Bloomberg investigation revealed that the cotton used for some Shein products had links to the Xinjiang region of China, where US officials say forced labor of Uyghurs is occurring. She inside he said that only a small percentage of its cotton comes from Xinjiang or other “unapproved” locations.