Alibaba's (BABA) AliExpress has permanently banned a China-based seller of childlike sex dolls after a Reuters investigation raised concerns about potential violations of EU and US laws, Reuters reported Wednesday.

AliExpress initially told Reuters that it would remove the listings as a precaution, stating that the dolls did not breach its policies because they were of rigid construction with no sexual function.

The company later said it shut down the seller, Guava Dolls, after determining the seller had been "dishonest" about its activities, according to the report.

Reuters identified four listings of dolls resembling minors that appeared in Europe and the US shortly after Paris prosecutors launched investigations into AliExpress and Shein for disseminating images of minors of a pornographic nature.

Lawyers interviewed by Reuters said the dolls featured elements commonly associated with child sexualisation, such as school uniforms and infant-like expressions.

AliExpress told Reuters that the seller had repeatedly denied selling sex toys but later admitted to accepting customized orders on other platforms when confronted with screenshots.

The company added that it plans to involve more third parties to help monitor its marketplace.

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