Italy’s competition authority announced it has imposed a fine of $1.15 million on the operator of Shein’s European websites for making misleading and deceptive statements regarding the online retailer’s environmental sustainability efforts.
The AGCM watchdog alleges that the China-based fast-fashion giant employed a deceptive communication strategy about the nature and environmental impacts of its clothing products.
In a statement, the authority said the fine was levied against Infinite Styles Services Co. Ltd, the firm in charge of operating Shein’s product trading websites across Europe.
The AGCM charged the company with delivering “misleading and/or deceptive environmental messages and claims… in the promotion and sale of Shein-branded clothing products.”
In certain cases, these messages were vague, generic, or excessively exaggerated, while in others they were misleading or omitted important information.
Furthermore, claims about the recyclability of products “were found to be either false or at least confusing”, it said.
Consumers might be easily misled into thinking that Shein products are made entirely from sustainable materials and are completely recyclable, “a statement which, given the fibres used and current recycling systems, does not reflect reality.”
The AGCM also challenged the retailer’s assertions that it would cut greenhouse gas emissions by 25% by 2030 and achieve net-zero emissions by 2050.
The watchdog stated that these “vague” commitments from a rapidly expanding company were “contradicted by an actual increase in Shein’s greenhouse gas emissions in 2023 and 2024.”
In a statement, Shein said, “We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”
When AGCM’s investigation was launched last year, Shein said it was ready to cooperate openly with the relevant Italian authorities, providing the necessary support and information to address any enquiries.