Shein Faces €1 Million Fine in Italy for Misleading Green Claims

Italy’s antitrust agency has imposed a fine of €1 million on the Chinese fast-fashion retailer Shein for making misleading environmental claims about its products. The decision, announced on October 16, 2023, by the Italian Competition Authority (AGCM), highlights concerns regarding Shein’s communication strategy related to the sustainability of its clothing.

The AGCM stated that Shein, which operates in the fast and superfast fashion sectors, adopted a strategy that was misleading regarding the environmental impact of its products. According to the agency, Infinite Styles Services Co. Ltd., the entity responsible for Shein’s European operations, disseminated claims that were at times vague, overly emphatic, or misleading.

One of the focal points of the investigation was Shein’s promotion of its “evoluSHEIN by design” collection, which features the use of “green fibers.” The Italian authority emphasized that these claims could mislead consumers into believing the collection is “fully recyclable,” a characterization they found to be inaccurate given the materials used and the current recycling systems available.

In its findings, AGCM noted that Shein’s statements about reducing greenhouse gas emissions by 25% by 2030 and achieving zero emissions by 2050 were presented in a vague manner. These claims were further undermined by a reported increase in Shein’s greenhouse gas emissions during 2023 and 2024.

In response to the ruling, Shein stated through a spokesperson that the company has “strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.” As of the publication of this article, Shein had not provided further comments regarding the penalty to POLITICO.

Italy’s actions mark a significant step in the regulatory scrutiny surrounding Shein, following a €40 million fine imposed by France in July 2023 for similar issues relating to fake discounts and greenwashing practices. Additionally, the European Commission has been investigating Shein for alleged violations of consumer protection laws, focusing on misleading sustainability claims and deceptive pricing practices.

The EU has intensified its scrutiny of the fast fashion sector, particularly concerning the influx of inexpensive goods entering the market from Chinese retailers such as Shein, AliExpress, and Temu. This regulatory push aims to address potential violations under the Digital Services Act and ensure better consumer protection standards.

As the global fashion landscape evolves, the implications of such fines and investigations could reshape how companies approach sustainability and transparency, impacting both consumer trust and regulatory compliance in the future.