Shein oh dear clocks ticking for tomorrow….11 Jul 2024 16:46
Shein’s practices could get the company into hot waters in Europe: at the end of June, the European Commission asked Shein and Temu for more information on how they’re making sure that their practices are in line with the Digital Services Act. The Commission questions both firms on the transparency of their recommender systems, the online interfaces used in their apps, and the protection of minors. Shein and Temu must reply by Friday. The Commission could then start formal proceedings against both companies.
That could come at a hefty price for Shein. The Commission may fine companies up to 6 per cent of their global annual turnover for breaches. Given that Shein claims it earns “a lot more” than 28 billion euro annually, the penalty could reach over 1.7 billion euros.
Shein did not respond to requests for comment on the design of the game.