Everyone loves a good bargain. But what if your €3 t-shirt comes with extra baggage? It all started last year with a massive scandal in France. Authorities found illegal products, including a childlike sex doll, being sold on Shein. Now, the EU is stepping in.
The European Commission has just launched a formal, priority investigation into the e-commerce giant under the EU's Digital Services Act.
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Brussels is targeting Shein's entire business model.
They are investigating its addictive design, such as giving users points and rewards to keep them hooked, and demanding transparency about the secret algorithms that drive these products.
If Shein is found guilty, it faces multi-million euro fines. France has even threatened to suspend access to the site entirely.
And the crackdown does not stop there. Consumer watchdogs are raising the alarm on influencers pushing cheap "haul" and "dupe" videos on social media without disclosing they are paid partnerships.
Finally, the EU is hitting these companies where it hurts: your wallet.
Starting in July 2026, the EU is slapping a flat €3 customs tax on every single parcel under €150.
With an estimated 12 million cheap packages entering the EU every single day, the days of tax-free shopping sprees on Chinese online marketplaces are officially numbered.
And since the Chinese New Year just kicked off, Happy New Year to the e-commerce giants. The EU just opened a massive probe, and unfortunately, that is a gift you cannot return.
Watch the Euronews video in the player above for the full story.