Chinese-founded retail giant Shein is expected to be subject to the European Union's strict online content regulations. The European Commission announced on Friday that the rapid growth of Shein's user base has pushed the company into the realm of “Very Large Online Platforms” (VLOPs), making it subject to strict provisions outlined in the Digital Services Act (DSA). did.
According to the criteria set out in the DSA, companies with more than 45 million users are classified as VLOPs and are required to take increased efforts to combat illegal content, harmful materials, and counterfeit products on their platforms. Reuters reported Known for its rapid growth and trendy apparel, Shein recently revealed an impressive 108 million monthly active users in the EU alone.
Following Schein's new designation, the European Commission outlined a compliance timeline, stipulating that the company must comply with the most stringent DSA regulations within four months of notification, effectively pushing the deadline to 2024. It was set at the end of August.
The obligations imposed by the DSA go beyond mere content moderation. VLOP is tasked with implementing tailored measures to protect our users, especially minors, and to identify and reduce overall risks associated with our services. Reuters highlighted These obligations aim to promote a safer online environment and encourage consumer confidence in digital transactions.
Recognizing the importance of regulatory compliance and consumer protection, Schein expressed its determination to work with the EU regulatory framework. Leonard Lin, Shein's Global Head of Communications, articulated the company's dedication to supporting the European Commission's objectives and ensuring a safe online shopping experience for European consumers.
“We share the European Commission's ambition to ensure that EU consumers can shop online with confidence, and we are committed to playing our part,” Lin said in a statement. and emphasized Shein's commitment to complying with regulatory standards and fostering trust within its vast user base. .
Shein's integration into the VLOP space marks a pivotal moment at the intersection of fast fashion and regulatory oversight, with digital platforms taking greater responsibility in combating online dangers and protecting consumer interests. This highlights the growing need to bear the burden.
Source: Reuters