France investigates Shein for illegal items and exposes oversight failures on global marketplaces

The sale of prohibited products, such as dolls with childish sexual connotations and illegal weapons, by online retail giant Shein, triggered a rigorous investigation by French authorities. The case sheds light on a systemic and persistent failure at large global marketplaces, which continue to face difficulties in effectively monitoring and policing the millions of third-party sellers who use their platforms to reach consumers around the world.

The controversy gained momentum after the French government announced a ban on the sale of items on the platform and requested that Comissão Europeia launch a formal investigation against the Chinese retailer. The action is based on Lei of Serviços Digitais (DSA), the European bloc’s new and robust legislation designed to increase the responsibility of online platforms for the content and products that circulate in their digital environments.

This episode reignites the debate about the responsibility of e-commerce companies, which generate billions in revenue by offering an almost infinite variety of products at low prices. The ability to adequately monitor such a massive volume of items has become one of the biggest regulatory challenges today, putting consumer safety and rights at risk.

Insufficient oversight of retail giants

The situation involving Shein is not an isolated case and reflects a chronic problem in the sector. In 2022, Amazon was the target of criticism in Reino Unido for selling illegal weapons and, years earlier, in 2018, it faced a controversy similar to that of Shein when it allowed the sale of sex dolls with a childish appearance, demonstrating the recurrence of the failure.

Experts and consumer protection organizations point out that removing an illegal product from a platform often does not resolve the problem definitively. It is common for the same items, or very similar products, to reappear a short time later under different names or sold by other suppliers, making inspection a continuous and, at times, ineffective effort.

Shein’s response and regulatory pressure

Given the repercussions, representatives from Shein met with Comissão Europeia to discuss the allegations. In an official statement, the company stated that it uses detection tools and maintains a team of more than 900 employees dedicated to content moderation to identify and remove prohibited merchandise or those that violate its internal policies.

The company highlighted that it has processes in place to vet product listings and that it cooperates with authorities to ensure compliance with local laws. Investigation under Lei of Serviços Digitais could result in heavy fines if systematic violations of the new European rules are proven.

The pressure from França for action at the European level signals a tougher stance by the bloc against the practices of platforms that, according to critics, operate with a lower level of supervision than that required for traditional retailers established in União Europeia.

The legal vacuum in platform responsibility

One of the main obstacles to the effective accountability of marketplaces lies in the current legislation of União Europeia. Como act as intermediaries, they are not legally considered the “importer” of products sold by third parties on their platforms, which exempts them from direct responsibilities for the safety and legality of the goods.

Consumer organizations, such as the European BEUC, have been actively advocating for a change in this classification. The expectation is that the EU’s next customs reform will address this gap, giving more responsibilities to platforms that facilitate the entry of products into the European market.

The lack of an EU-based entity for many foreign sellers further complicates law enforcement. Local authorities face practical and resource difficulties in taking action against a massive volume of globally dispersed sellers who use platforms as a legal shield.

This structure allows many suppliers from outside the bloc to operate with minimal oversight, making it difficult to hold them accountable for products that are dangerous, counterfeit or do not meet European safety standards.

Other marketplaces in the sights of authorities

The French investigation is not limited to Shein. Outras e-commerce giants such as Temu, AliExpress and Wish are also under scrutiny in Paris for alleged rule violations. The investigations cover not only the sale of illegal products, but also the failure to prevent minors from accessing pornographic content available on their websites, according to information from the local prosecutor’s office.

This broad approach indicates that authorities are addressing the problem in a systemic way, recognizing that moderation and control failures affect multiple platforms that operate with similar business models. The growing concern at Europa is directly linked to the exponential increase in the flow of low-cost Chinese products, which enter the bloc through these channels with little or no regulatory oversight.

The economic impact and exemption from customs duties

The popularity of platforms like Shein and Temu is driven by a business model that directly connects factories in China to end consumers, often exploiting a loophole in União Europeia customs legislation. Pacotes of e-commerce with a declared value below 150 euros are exempt from import duties, which allows these companies to offer extremely competitive prices. Essa exemption has created a massive flow of small parcels: in 2024, it is estimated that around 4.6 billion low-value packages will be imported into the EU, double the number recorded in the previous year. Essa dynamics generates competition considered unfair by local retailers, who are obliged to comply with all the bloc’s fiscal and regulatory standards, including the payment of import taxes, which makes their products more expensive. The current debate at Europa includes proposals to eliminate this exemption, seeking to level the playing field and ensure that all products sold in the European single market contribute fairly to taxes and follow the same safety and compliance rules.

The new rules of the digital game at Europa

The action against Shein and other platforms should be seen as a significant step in implementing Lei from Serviços Digitais. The legislation represents Europa’s most ambitious effort to regulate the online environment, forcing big technology companies to take greater responsibility for what happens in their ecosystems and protect users more effectively.