The European Commission has launched an investigation into Shein over concerns about addictive app design and illegal product sales. The probe focuses on the fast-fashion retailer's engagement tactics, including points and rewards systems, and whether these features properly mitigate addiction risks. The Commission also found Temu in violation of the Digital Services Act last year after a similar investigation.

The investigation examines Shein's algorithmic recommendation systems and demands transparency about how products are suggested to users. Regulators require the company to offer recommendation systems that don't rely on user profiling. This marks another regulatory challenge for the Singapore-based company, which has faced scrutiny over labor practices, materials sourcing, data practices, and IP infringement.

Shein has previously been investigated by the Texas Attorney General over safety and labor concerns, including allegations of forced labor and toxic materials. The probe follows similar regulatory actions against platforms like TikTok and X, as European authorities prioritize addressing addictive design and algorithmic transparency. The Commission can levy fines and demand operational changes if violations are found.