New EU regulations target Shein’s counterfeit fashion problem

Image: The Verge

Shein, 1 of the astir fashionable online buying platforms, volition beryllium required to comply with strict regulations nether the EU’s Digital Services Act (DSA), the European Commission announced today.

The fast-fashion institution reported having much than 45 cardinal mean monthly users successful the EU, earning it the designation of a “very ample online platform” (VLOP). The statement applies to the biggest tech companies similar Amazon, AliExpress, Meta, and TikTok and requires them to comply with rules astir contented moderation and idiosyncratic privateness and safety. In February, the European Commission handed down much wide rules that use to each platforms but the smallest.

The European Commission specifically noted caller requirements for Shein astir amerciable products connected its site. The institution volition person 4 months to taxable a hazard appraisal study and volition request to present mitigation measures against “the listing and merchantability of counterfeit goods, unsafe products, and items that infringe connected intelligence spot rights.”

Shein, which sells its ain products and acts arsenic a marketplace for third-party sellers, has been plagued by accusations of counterfeits and copyright violations. Artists person accused Shein of stealing their enactment to make products, and brands similar Oakley and Ralph Lauren have sued Shein for violating their intelligence spot rights.

In effect to a petition for comment, Shein directed The Verge to a statement from Leonard Lin, planetary caput of nationalist affairs, saying successful portion that the institution “share[s] the Commission’s ambition to guarantee consumers successful the EU tin store online with bid of mind, and we are committed to playing our part.”

Other DSA requirements astir transparency reports and audits could springiness the nationalist a look into Shein’s concern that we antecedently haven’t gotten. Aside from claims of counterfeit oregon infringing products connected the platform, Shein’s proviso concatenation has travel nether scrutiny, mostly astir the moving conditions of the radical making the $15 dresses and $3 T-shirts. Reports person found that workers were taxable to illegally agelong hours and different labour violations, and a Bloomberg investigation revealed that fabric utilized for immoderate Shein products had links to the Xinjiang portion successful China, wherever US officials say the forced labour of Uyghurs is occurring. Shein has said that lone a tiny percent of its fabric comes from Xinjiang oregon different “unapproved” places.

Increased regularisation successful the EU besides comes arsenic Shein eyes an archetypal nationalist offering successful the US. The e-commerce institution filed to spell nationalist precocious past twelvemonth and was valued astatine $66 cardinal successful 2023.