Shein Fined €1 Million by italy for Misleading Environmental Claims
Dijon, France – Italian competition authorities have issued a €1 million (approximately NZ$1.96 million) fine too shein, the Chinese-founded fast fashion retailer, for deceptive marketing practices regarding the environmental impact of its products. This marks the second penalty from a European regulator in just over a month, following a €40 million fine from France on July 3rd for false discounts and misleading “green” claims.
The fine, levied against Infinite Styles Services Co.Limited – the Dublin-based entity operating Shein’s European website – stems from a “greenwashing” investigation initiated by the Italian competition authority (AGCM) last September.
Shein stated it fully cooperated with the AGCM and has taken steps to address the identified concerns. However, the AGCM found that the company’s messaging surrounding environmental sustainability and social responsibility was often “vague, generic, and/or overly emphatic,” and in some instances, actively misleading.
Specifically, claims regarding circular system design and product recyclability were deemed “false or at the very least confusing.” The regulator also highlighted overstated environmental benefits associated with shein’s ‘evoluSHEIN by design’ collection, marketed as utilizing more lasting manufacturing processes.AGCM determined consumers could be misled into believing this collection was made with eco-kind materials and was fully recyclable – a claim unsupported by the materials used and current recycling capabilities.
Moreover, the AGCM challenged Shein’s commitments to reduce greenhouse gas emissions by 25% by 2030 and achieve net zero by 2050, citing a contradiction with the company’s increased emissions in both 2023 and 2024.
The Italian regulator emphasized an “increased duty of care” for Shein, given its operation within the “highly polluting” fast and ultra-fast fashion sector. AGCM,responsible for both consumer protection and competition regulation,stated its assessment considered the environmental impact of Shein’s business model.
Shein responded by stating it has “strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”
The investigation began last year, at which time Shein expressed its willingness to cooperate with Italian authorities. Founded in China, Shein has faced growing scrutiny regarding its labor practices and environmental record, especially following reports of a potential London stock listing.
