Italy’s Competition Authority fines Shein €1 million for greenwashing

Italy's Competition Authority fines Shein €1 million for greenwashing

The Italian Competition Authority (AGCM) has imposed a fine of €1 million on Infinite Styles Services Co. Ltd, the company responsible for managing fast-fashion giant Shein’s trading websites in Europe, for reported greenwashing.

The fine, which specifically relates to ‘the use of misleading and/or deceptive environmental messages and claims (so-called green claims) in the promotion and sale of Shein-branded clothing products’, follows on from an investigation into the use of environmental claims in Shein’s marketing and product descriptions.

Online claims

It refers to claims made in sections entitled ‘#SHEINTHEKNOW’, ‘evoluSHEIN’, and ‘Social Responsibility’ on Shein’s online platforms, that were ‘in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive’, the AGCM said.

Claims in these sections often implied that Shein’s clothing was part of a circular system or made from recyclable materials, however the investigation concluded that these statements were not supported by verifiable data or clear definitions, and in some cases, were simply not accurate.

‘The environmental assertions in the #SHEINTHEKNOW section, regarding the “design of a circular system” or the recyclability of products, were found to be either false or at least confusing,’ the AGCM said.

‘Claims used by Shein to present, describe, and promote garments in the evoluSHEIN by Design line highlight the use of “green” fibres without clearly specifying the substantial environmental benefits of these products throughout their full life cycle, and without clarifying that this line remains a marginal share of the total Shein-branded offering. Moreover, these claims may lead consumers to believe not only that the evoluSHEIN by Design collection is made solely from “sustainable” materials, but also that its products are fully recyclable — a statement which, given the fibres used and current recycling systems, does not reflect reality.’

Elsewhere, in its ‘Social Responsibility’ section, Shein outlines its public commitments to reduce greenhouse gas emissions by 25% by 2030 and to reach zero emissions by 2050, however the authority said that these commitments were presented in a ‘vague and generic’ way, and were inconsistent with actual emissions data from 2023 and 2024, which showed an increase in emissions.

Fast fashion

The AGCM emphasised that companies operating in fast fashion sectors have a greater responsibility in how they present environmental claims.

‘In assessing the unfairness of Shein’s conduct, the Authority emphasised the heightened duty of care upon the company, given that the sector it belongs and the business practices through which it operates, such as the so-called “disposable fashion” (fast and ultra-fast fashion) are highly polluting,’ it noted. Read more here.

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