Everyone appreciates a good deal. But what if that €3 t-shirt hides something more? The controversy began last year in France, where authorities uncovered illegal items, including a childlike sex doll, being sold via Shein. Now, the European Union is taking action.

The European Commission has initiated a formal, high-priority probe into the e-commerce giant under the EU’s Digital Services Act.

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Brussels has set its sights on Shein’s entire operational framework.

The investigation centers on its addictive interface design, like awarding users points and incentives to encourage continued engagement, along with demands for full transparency regarding the opaque algorithms that power its offerings.

Should Shein be deemed accountable, it risks facing multimillion-euro penalties. France has even threatened to block access to the platform completely.

Moreover, the scrutiny extends further. Consumer protection agencies are sounding the alarm over influencers promoting inexpensive “haul” and “dupe” videos on social media without revealing these as paid endorsements.

Ultimately, the EU aims to affect these companies financially.

Beginning July 2026, a fixed €3 customs duty will be imposed on every single parcel valued under €150.

With roughly 12 million low-cost packages entering the EU daily, the era of tax-free shopping sprees from Chinese online marketplaces is nearing an end.

And as the Chinese New Year has just commenced, a Happy New Year to the e-commerce giants—the EU has launched a significant investigation that won’t be easy to dismiss.

Watch the Euronews video in the player above for the complete report.