The Italian Competition Authority (AGCM) has fined China-based fast-fashion retailer Shein 1 million euros for misleading customers, Reuters reported.
This is the second time this month that Shein has been hit with a financial penalty from Europe. On the 3rd of July, France fined the company 40 million euros for misleading environmental claims.
The AGCM fined Dublin-based Infinite Styles Services Co. Limited, which runs Shein’s European website, after an investigation into greenwashing launched last September. Shein did not respond to a request for comment.
The Competition Council has stated that the information on sustainability and social responsibility on the Shein website was vague, general and overly empathetic, and in some cases the information was incomplete or misleading. The Italian regulator added that the company’s statements on circular design and the possibility of recycling products were false or at least very confusing, and that
the environmental friendliness attributed to the “evoluSHEIN by design” collection was also an exaggeration.
The “evoluSHEIN by design” collection is advertised as clothing created through a sustainable and responsible production process. The AGCM stated that this could lead to the idea that the clothes in the collection are made from environmentally friendly materials and are fully recyclable, which, given the fibers used and the recycling methods currently available, is a lie.
The council also pointed to Shein’s vague and general statements about its commitment to reduce greenhouse gas emissions by 25% by 2030 and to reach net-zero emissions by 20250. This contradicts the fact that emissions at the company’s production sites increased in both 2023 and 2024.
In Italy, the AGCM is responsible not only for competition supervision, but also for consumer protection. At the time the investigation was launched, Shein stated that it was ready to cooperate with the relevant Italian authorities by providing the necessary information. The Chinese-founded company is known for producing very cheap shirts and dresses, and since the company announced its listing on the London Stock Exchange, authorities in various countries have paid increasing attention to Shein’s working conditions and environmental protection issues.
Read also: Albania plans to become the first cashless country