EUROPEAN COMMISSION NAMES SHEIN AS A LARGE ONLINE PLATFORM UNDER THE DIGITAL SERVICES LAW
By Asier Martínez Jurio / Aquí Europa
The European Commission, this April 26, 2024 officially designated Shein as a very large online platform under the Digital Services Act. It is an online fashion retailer with a monthly average of more than 45 million users in the EU. This number of users exceeds the Digital Services Act threshold for VLOP designation.
After acquiring the VLOP designation, Shein will be required to abide by the rules of the Digital Services Act within four months of its notification (i.e. from the end of August 2024). Prominent among these is the obligation to take specific measures to empower and protect online users, including minors, and to properly assess and mitigate any systemic risk arising from its services.
More specifically, these additional obligations include:
– Shein must accurately analyze specific systemic risks in relation to the dissemination of illegal content and products and from the design or operation of its service and related systems. Risk assessment reports must be submitted to the Commission four months after notification of formal designation and annually thereafter.
– Shein must put in place mitigation measures to address risks, such as the listing and sale of counterfeit products, unsafe products and items that infringe intellectual property rights.
– Shein must strengthen its internal processes, resources, testing, documentation and oversight of any of the activities related to systemic risk detection.
Regarding transparency:
– Shein’s annual risk assessment reports must specifically assess any potential adverse effects on the health and safety of consumers, with an emphasis on the physical and mental well-being of underage users.
– Shein is required to structure its platform, including user interfaces, recommendation algorithms and terms of service, to mitigate and prevent risks to the safety and well-being of consumers.
As of February 17, 2024, all online platforms, including Shein’s online marketplace service, already have to comply with the general obligations under the Digital Services Act. These general provisions include obligations for online marketplaces to:
– Ensure traceability of traders on their platforms;
– Design their interface in a way that facilitates traders’ compliance with their legal obligations under EU law;
– Inform consumers of their purchase of an illegal product, the moment they become aware of the illegality of the product.
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This article was originally published in Aquí Europa, with whose permission we reproduce it.
