New EU regulations address the problem of Shein’s counterfeit fashion

The fast-fashion company reported that it has more than 45 million average monthly users in the EU, earning it the title of ‘very large online platform’ (VLOP). The label applies to the largest technology companies such as Amazon, AliExpress, Meta and TikTok and requires them to comply with rules around content moderation and user privacy and security. In February, the European Commission issued more general rules that apply to all but the smallest platforms.

The European Commission has specifically pointed out on its site new requirements for Shein regarding illegal products. The company has four months to submit a risk assessment report and will have to implement mitigation measures against “the offering and sale of counterfeit goods, unsafe products and items that infringe intellectual property rights.”

Shein, which sells its own products and acts as a marketplace for third-party sellers, has been plagued by allegations of counterfeiting and copyright violations. Artists have accused Shein of stealing their work to create products, and brands like Oakley and Ralph Lauren have sued Shein for violating their intellectual property rights.

In response to a request for comment, Shein directed The edge to a statement from Leonard Lin, global head of public affairs, saying in part that the company “shares the Commission’s ambition to ensure EU consumers can shop online with confidence, and we are committed to playing our part to play. ”

Other DSA requirements around transparency reports and audits could give the public a look into Shein’s business that we haven’t gotten before. Aside from claims of counterfeit or infringing products on the platform, Shein’s supply chain has come under scrutiny, largely around the working conditions of the people who make its $15 dresses and T-shirts. Reports have shown that workers faced illegally long working hours and other labor violations Bloomberg Investigations found that cotton used for some Shein products had ties to China’s Xinjiang region, where U.S. officials say the forced labor of Uighurs takes place. Shein has said that only a small percentage of cotton comes from Xinjiang or other “unapproved” places.