Shein fined €1 million in Italy for “misleading green claims”

Fast fashion giant, Shein, has come under regulatory scrutiny in recent months. After being hit with a record €40 million fine earlier this year by French regulators for misleading consumers on price reductions and the company’s environmental impact, Shein has now been fined by Italian regulators for misleading and omissive green claims, following an investigation that was launched in September 2024.

Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, was fined €1 million by the Italian Competition Authority (AGCM) for the use of misleading and/or deceptive environmental messages in the promotion of Shein-branded clothing.

According to AGCM, environmental claims made in the #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility sections of the company’s websites were “in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive”. 

AGCM found that:

• In the #SHEINTHEKNOW section of the website, environmental assertions were made about the “design of a circular system” and the recyclability of Shein products. These representations were found to be “either false or at least confusing”.
• Unsubstantiated claims were made in the presentation, description and promotion of garments in the evoluSHEIN by Design range, which highlighted the fact that clothing used “green” fibres. The AGCM found that there was no explanation given about the environmental benefits of these materials across their full lifecycle and the range only represented a small fraction of Shein's products. Furthermore, AGCM found that these claims could have led consumers to believe – in error - that the products in the collection were made solely from sustainable materials and were fully recyclable. 
• Statements concerning Shein’s intention to reduce its greenhouse gas emissions by 25% by 2030 and achieve net zero by 2050 were found to be potentially misleading.

Our thoughts

AGCM emphasised, in assessing Shein’s conduct, the heightened responsibility of companies operating in the fast and ultra-fast fashion sectors. We anticipate that Shein and similar retailers – whose business practices are increasingly criticised for their environmental impact - will continue to be subject to greater scrutiny in respect of their environmental representations.

In the UK, the CMA has already published guidance to help fashion businesses comply with the Green Claims Code and consumer law when making environmental claims about their products and related services (an overview of this guidance can be found in our earlier article).

Sustainability is a key concern for consumers and suppliers, and retailers seek to attract business through their green credentials. It is likely this will continue to be an issue for regulators across the globe as they seek to ensure that messaging from companies is specific, substantiated and aligns with reality. 

AGCM’s press release: AGCM - Italian Competition Authority: 1 million euros fine imposed on Shein for misleading and omissive green claims

Written by Christina Evered, Christopher Wenn and Christian Wade