Lawyer - about the message sent by the Shein investigation
A lawyer discusses the implications of the Shein investigation for the e-commerce sector, highlighting regulatory scrutiny on business practices beyond just product compliance.
The investigation into Shein is noted to set a precedent for the entire e-commerce sector. According to lawyer G. Dailidėnaitė, regulators will increasingly evaluate not only the products being sold but also the underlying business practices that inform how companies operate. This shift reflects a broader understanding that e-commerce platforms must meet standards that encompass their operational logic, particularly the algorithms that drive consumer recommendations.
Dailidėnaitė indicates that the scrutiny will extend into various aspects of business operations, such as pricing practices, discount mechanisms, timing, personalization, and user interface decisions. She emphasizes that it will no longer be sufficient for businesses to ensure that their products comply with regulations; they need to assess their entire marketing and sales strategy. The manner of selling, characterized by design choices that induce urgency or significant consumer involvement, could lead to increased regulatory risk.
As the landscape evolves, the focus on how algorithms function and influence ranking will likely enhance regulatory oversight. This reflects a growing trend towards accountability in e-commerce, signaling to businesses the need for comprehensive evaluations of all aspects of their operations to mitigate potential risks associated with consumer protection regulations.