EU Toughens Safety Rules For Online Retailer Shein

Brussels, (APP - UrduPoint / Pakistan Point News - 26th Apr, 2024) The European Union on Friday added Chinese-founded online retailer Shein to its list of digital companies that are big enough to come under stricter safety curbs.

The company joins Facebook, TikTok, X, YouTube and others on a list of "very large online platforms" which have more than 45 million monthly active users in the European Union.

From the end of August -- four months after the designation -- Shein will have to abide by tougher rules set out in the Digital Services Act (DSA), one of the EU's landmark laws against online platforms.

They include implementing measures to "protect consumers from purchasing unsafe or illegal goods, with particular focus on preventing the sale and distribution of products that could be harmful to minors," the European Commission said.

Shein, which is headquartered in Singapore, has said it has around 108 million monthly active users in the 27-nation EU.

Reacting to the announcement, Shein said it would comply with the rules.

"We share the commission's ambition to ensure consumers in the EU can shop online with peace of mind, and we are committed to playing our part," said Leonard Lin, global head of public affairs at Shein.

Beyond the EU, Shein has faced criticism over alleged exploitation of low-paid factory workers and arguments it promotes hyperconsumerism and causes damage to the environment.