The Italian Competition and Market Authority (AGCM) fined the Chinese online fast fashion retailer Shein €1 million (approximately $1.16 million) on Monday, August 4th, for misleading consumers on the environmental impact of its products, involving “greenwashing” behavior.
This marks the second fine imposed on Shein by European competition regulators in a little over a month. Previously, on July 3rd, France fined Shein €40 million for false discounts and environmental claims.
The target of the Italian action is Shein’s subsidiary Infinite Styles Services Co. Limited based in Dublin, responsible for operating its European website. The case stemmed from an investigation initiated by AGCM in September last year.
AGCM pointed out that statements on Shein’s website regarding environmental sustainability and social responsibility are “sometimes vague, superficial, overemphasized, with some content being omitted and misleading.”
While Shein claims to have a circular system design and recyclable products, AGCM believes these claims are “untrue or at least confusing,” with the environmental features of its “evoluSHEIN by design” green collection being excessively promoted.
AGCM stated that Shein promotes its “evoluSHEIN by design” collection as garments manufactured with more sustainability and responsibility. Consumers might be misled into thinking that this collection is made entirely from recyclable materials, which “does not align with the reality given the fibers used and the current recycling systems available.”
Shein has responded by stating that the company fully cooperated with the investigation and promptly took steps to improve the website information.
Moreover, AGCM also questioned Shein’s goals of reducing emissions by 25% by 2030 and achieving net-zero by 2050, criticizing the statements as “vague and superficial,” especially since in 2023 and 2024, Shein’s emissions actually increased.
AGCM emphasized that the overall assessment of Shein considers the high level of pollution inherent in the fast fashion industry to which the company belongs, as well as its highly polluting operational methods.
As the supervisory authority in Italy, AGCM is responsible for consumer protection and market competition affairs.
Last month, French authorities also launched an investigation into Shein’s greenwashing practices, questioning the lack of empirical support for its environmental claims such as “25% carbon reduction” and being a “responsible company.” The investigation also found that 57% of the platform’s promotions did not actually lower prices, 19% had discounts below the advertised prices, and even 11% of products increased in price during promotions.