Fast fashion giant Shein fined one million euros for greenwashing - media

In Italy, the consumer protection and competition authority fined fast-fashion online giant Shein 1 million euros, finding that it made misleading environmental claims, writes UNN with reference to Euractiv.

Details

The Italian regulator AGCM fined Infinite Styles Services Co. Ltd, responsible for selling Shein products in Europe. This decision followed a similar fine imposed on Shein in France last month.

By promoting and selling Shein products in Italy, Infinite Styles Services disseminated "misleading and/or deceptive environmental messages and statements," according to the AGCM press release regarding Shein's false "environmental claims."

The AGCM objected to several sections of the Shein website, including "SHEININTHEKNOW," "evoluSHEIN," and "Social Responsibility," where, according to the AGCM, the company's environmental claims were "vague, general, and/or overly expressive" or "misleading or unclear."

In its full decision, the Italian authority notes that the problematic content has been present on the Shein website since at least 2023.

Last month, the fast-fashion giant faced similar enforcement actions from the French consumer protection watchdog, although in that case, it was hit with a larger fine (€40 million) for a range of accusations, including false environmental claims.

Both regulators condemned Shein's claim that the company would reduce greenhouse gas emissions by 25% by 2030. The AGCM called this statement contradictory, pointing out that Shein's greenhouse gas emissions actually increased in 2023 and 2024.

In response to a request for comment on the AGCM's findings, a Shein representative sent Euractiv an email with a statement claiming that the company had taken "immediate steps to address the issues raised as soon as they became aware of them."

The statement also said that the company had "improved its website to ensure all environmental claims are clear, verifiable, and compliant with regulatory requirements."

The Italian regulator told Euractiv that "Shein's unfair commercial practices began at least in January 2023 and continue to this day."

When asked about the relatively small fine, the AGCM replied that its "Codice del consumatore" sets a maximum fine of 10 million euros, adding: "In any case, the fine must be proportionate to the turnover of the fined company."

According to the agency's decision in the Shein case, Infinite Styles Services reported that the e-commerce platform's revenue in Italy for 2023 was only 3 million euros.

In addition, the fast-fashion giant faces investigations into alleged violations of EU consumer protection law by several national consumer protection authorities, as well as an ongoing investigation under the bloc's online space governance rules - the Digital Services Act (DSA). However, so far, the retailer has not been fined at the EU level.

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