Shein Greenwashing Fine: Italy Issues 1 Million Euro Penalty
shein Fined €1 Million by Italy for Greenwashing
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Italy’s competition authority has hit Shein, the fast fashion giant, with a €1 million (NZ$1.96 million) fine for misleading consumers about the environmental impact of its products. this marks the second financial penalty from a European regulator in just over a month, following a €40 million fine from France in July for deceptive discounts and environmental claims.
Shein’s Misleading Environmental claims Under Scrutiny
The Italian competition authority (AGCM) levied the fine against Infinite Styles Services Co. Limited, the Dublin-based company responsible for operating Shein’s website in Europe.The penalty stems from a “greenwashing” investigation launched last September, focusing on the accuracy and openness of Shein’s environmental messaging.
AGCM found that Shein’s claims regarding environmental sustainability and social duty were often “vague,generic,and/or overly emphatic,” and in some instances,outright misleading. Specifically, the regulator took issue with assertions about circular system design and product recyclability, deeming them “false or at the very least confusing.”
‘evoluSHEIN by Design’ Collection Deemed Misleading
A key focus of the investigation was Shein’s ’evoluSHEIN by design’ collection, marketed as clothing produced using more enduring and responsible manufacturing processes. AGCM determined that claims surrounding this collection were overstated, leading consumers to believe the garments were made with eco-amiable materials and were fully recyclable – a claim unsupported by the materials used and current recycling infrastructure.
“Consumers could be misled to think that the collection was made with eco-friendly materials and fully recyclable, a fact that, considering the fibres used and currently existing recycling systems, is untrue,” the regulator stated.
Vague Emissions Targets and Industry Concerns
The authority also challenged Shein’s commitments to reduce greenhouse gas emissions by 25% by 2030 and achieve net zero by 2050. AGCM pointed out that these pledges contradicted the company’s actual increase in emissions during 2023 and 2024.
AGCM emphasized an “increased duty of care” for Shein, citing its operation within the “highly polluting sector” of fast and super-fast fashion. The regulator highlighted the environmental impact of Shein’s business model and the need for greater transparency.
Shein’s Response and Ongoing Cooperation
In a statement, Shein said it had “cooperated fully with AGCM and took immediate action to address the concerns raised.” The company added that it has “strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”
Broader Scrutiny of Fast Fashion Practices
This latest fine adds to growing scrutiny of Shein’s business practices,including concerns about worker treatment and environmental impact. These issues gained prominence last year when reports surfaced regarding potential plans for a London stock exchange listing.
AGCM, responsible for both consumer protection and competition regulation, launched its investigation last year, to which Shein responded by stating it was ”ready to cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries.”
The increasing regulatory pressure on Shein reflects a broader trend of heightened awareness and enforcement regarding greenwashing and sustainability claims within the fashion industry.