For the second consecutive month, Shein, an online fast fashion retailer, has been fined a substantial amount for deceiving customers regarding the environmental impact of its products. Italy’s antitrust authority, AGCM, imposed a €1m fine on Shein on August 4 for misleading environmental claims. This penalty follows a €40m fine issued by France’s DGCCRF just a month ago for deceptive environmental commitments and price reduction claims.
AGCM’s investigation revealed that Shein’s sustainability messages on its website were inaccurate due to their vagueness, generality, and misleading nature. The #SHEINTHEKNOW section contained false or confusing claims about recyclability and product circularity, while assertions about the sustainability of the evoluShein by Design line were potentially misleading.
Moreover, Shein made ambiguous statements about reducing greenhouse-gas emissions by 2030 and achieving zero emissions by 2050, despite an increase in emissions since 2023. The fine was levied on Infinite Styles Services Co. Limited, Shein’s Dublin-based operator in Europe. Shein has yet to respond to inquiries from The Mirror.
In a statement to The Guardian, Shein emphasized its cooperation with AGCM and immediate actions taken to rectify concerns. The company stated that it has enhanced internal review processes and updated its website to ensure environmental claims comply with regulations.
On the same day as the Italian fine, Shein announced sustainability efforts, including the use of “new energy vehicles” for warehouse transport and four Shein-managed facilities earning a ‘Zero Waste to Landfill’ certification from TÜV Rheinland. European authorities have intensified scrutiny on Shein, with the European Commission and national consumer protection agencies finding the company in violation of EU commercial laws.
While the Italian fine was less severe than the French penalty, France continues to lead the charge against Shein in safeguarding consumers and local businesses. The French Senate recently approved legislation to regulate fast fashion giants like Shein and Temu, targeting companies with low eco-scores and banning fast fashion ads. This move was hailed by the minister for ecological transition as a significant step in combating the economic and environmental impact of fast fashion.
Despite attempts to obtain comments from AGCM and France’s Directorate for Competition, no further information was provided.
