Report from Reuters
In Brief – The French Finance Ministry has suspended proceedings aiming to block the website of Chinese retail marketplace Shein in France that it initiated after government officials reported that they found illegal products, including “childlike” sex dolls and knife-style weapons for sale on the site. The move to shut down the website began the same day the online marketplace, primarily known for its low-priced fast-fashion offerings, opened its first physical shop in Europe in a Paris department store, which drew shoppers and protesters. Shein responded to the government’s action by blocking all third-party sellers on its platform in France, and a French consumer group reported that illegal products, including medicines, were no longer on Shein. The company said that it was committed to “address the concerns raised and to present the measures we have put in place to continue improving,” while Prime Minister Sebastien Lecornu said, “Shein will remain under close surveillance by state services.” Four investigations opened by an independent prosecutor in Paris over the sale of the sex dolls will continue.
Context – Consumer advocacy groups and traditional retailers in Europe have long complained about the sale of unsafe products on digital platforms such as Amazon and AliExpress. More recently the focus has been on China-based Temu and Shein. The EU Digital Services Act, which regulates how digital platforms deal with illegal and objectionable content online, governs how online marketplaces for physical or digital goods address dangerous, fraudulent, or illegal goods. Platforms with over 45 million active users in the EU are designated Very Large Online Platforms (VLOPs) and face the strictest standards and enforcement by the European Commission itself. Among the 25 current VLOPs are online commerce marketplaces AliExpress, Amazon, Shein, Temu, and Zalando. The Commission has engaged in DSA investigations against AliExpress and Temu and there are calls for the commission to promptly open one against Shein.