EU Opens Major Investigation Into Shein Over Child Sex Dolls and Addictive Shopping Features
Brussels, Tuesday, 17 February 2026.
The European Commission launched formal proceedings against Chinese retailer Shein on February 17, 2026, under the Digital Services Act for three serious violations: selling illegal products including child-like sex dolls, using addictive design features that reward user engagement, and maintaining opaque recommendation systems. This marks a significant enforcement action that could result in fines up to $2.2 billion—six percent of Shein’s $37 billion annual revenue. The investigation follows French regulators’ discovery of prohibited items on the platform in 2025, highlighting growing EU scrutiny of e-commerce giants and their algorithmic systems that may exploit user behavior patterns.
Three Core Violations Under Digital Services Act
The European Commission’s investigation centers on three critical areas where Shein allegedly violates the Digital Services Act [1]. The first focuses on systems Shein has in place to limit the sale of illegal products in the European Union, including content which could constitute child sexual abuse material, such as child-like sex dolls [1]. EU officials express deep concern about the platform’s compliance mechanisms, with one stating: “We have a suspicion that the system of Shein is not built to avoid the sale of illegal products,” and adding, “Illegal products? There is still a lot there so something is probably not working” [2].
French Regulatory Action Sets Stage for EU Investigation
The formal investigation follows a series of regulatory actions in France throughout 2025 that exposed serious compliance issues. In November 2025, France’s consumer watchdog reported Shein for selling child-like sex dolls, leading to Shein’s pledge to ban all sex dolls [4]. French authorities had threatened to suspend Shein over these illegal products, though France ultimately abandoned this push months before February 16, 2026 [2]. In December 2025, a Paris court ordered Shein to implement age verification and filtering mechanisms to prevent minors from accessing pornographic content [2][4]. EU Justice Commissioner Michael McGrath was reportedly “shocked” by the toxicity and danger of some products found on Shein last year [2].
Irish Headquarters Complicates Regulatory Oversight
The investigation takes on additional complexity due to Shein’s corporate structure within the EU. Irish media regulator Coimisiún na Meán is involved in the proceedings because Shein’s European headquarters are located in Ireland [4]. This arrangement means the investigation must coordinate between the European Commission and Irish regulatory authorities, adding a layer of jurisdictional complexity to the enforcement action. EU Commission Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen emphasized the universal application of EU law, stating: “In the EU, illegal products are prohibited - whether they are on a store shelf or on an online marketplace” [4][5].
Financial Stakes and Compliance Response
The financial implications for Shein are substantial, as companies can face fines up to six percent of their annual global revenue for DSA violations [5]. Based on Shein’s total revenue of $37 billion for 2024, this puts the company at risk of penalties reaching 2.220 billion million, or $2.2 billion [5]. Shein has responded by stating it takes its obligations under the Digital Services Act seriously and is cooperating with the European Commission [4]. The company claims it has “continued to invest significantly in measures to strengthen compliance with the DSA” over recent months [4].