The European Commission has opened a formal investigation into Chinese fast-fashion retailer Shein, citing suspected breaches of EU law related to the sale of illegal products and the use of potentially addictive design features.

The probe will examine three areas: the sale of illegal or noncompliant goods, including prohibited items; design elements such as gamification and rewards that could pose risks to users’ mental well-being; and opaque recommender systems that may overwhelm consumers with product suggestions. A senior EU official said regulators suspect Shein’s systems are not designed to prevent illegal sales, describing the platform as “high risk” despite the company’s self-assessment of low risk.

The investigation follows a preliminary information request sent last year and marks the Commission’s second inquiry into addictive online retail design, after similar action against Temu in late 2024. Shein said it takes its obligations seriously and has invested in compliance measures, including stronger protections for younger users. EU officials said the probe does not automatically lead to a ban, though blocking Shein’s operations would remain a last-resort option if violations persist.

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