The EU takes aim at Shein: What about trade mark law?
Dubious quality, illegal content and trademark infringement: The Chinese shop Shein must provide the EU Commission with extensive information and concrete measures within three weeks. Otherwise it will be expensive.
The EU Commission is scrutinising the Chinese online marketplace Shein. Brussels is demanding comprehensive information from the Chinese shop on possible violations of EU regulations, in particular the Digital Services Act (DSA) (also Temu has already had to answer questions). In particular, the Commission wants to know how Shein deals with illegal products, consumer protection and data protection. The company has been given a deadline of 27 February to respond.
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Shein already had to respond to a formal request for information in June 2024. But this time, the EU is going even further - and is hinting that formal proceedings could follow. If Shein is found to be in breach of the DSA, the company could face severe penalties.
What exactly does the EU want to know from Shein?
The EU Commission is primarily interested in three questions:
1. How does Shein deal with illegal suppliers on its platform?
Products with counterfeit brand names and items that are hazardous to health (e.g. highly flammable fashion items) have been discovered on the platform in the past. Brussels wants to know what measures Shein is taking to prevent such offers.
2. How does Shein protect consumers and public health?
The EU requires a detailed risk assessment: Are buyers sufficiently warned about dangerous or non-compliant products? Are there mechanisms in place to quickly remove such items from the range?
3. How does Shein handle the data of its European customers?
126 million people in Europe use the platform every month, making Shein a so-called VLOP (very large online platform). For Shein, this means that it is not the Irish data protection authority but the EU Commission that is responsible for monitoring. Violations of the DSA can lead to high fines - or in extreme cases even to restrictions on operations in Europe. The Commission now wants to know how Shein processes, stores and protects personal data.
Does Shein face official proceedings?
If the Commission is not satisfied with Shein's answers, it could initiate official DSA proceedings under Article 66. Particularly explosive: once a procedure is underway, the EU can extend it to other topics at any time - for example to tax issues or working conditions in supply chains. If Shein does indeed violate EU rules, this could mean longer delivery times, less product choice or even higher prices for EU customers.
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I've been tinkering with digital networks ever since I found out how to activate both telephone channels on the ISDN card for greater bandwidth. As for the analogue variety, I've been doing that since I learned to talk. Though Winterthur is my adoptive home city, my heart still bleeds red and blue.
