Fast-fashion retailer Shein fined €1 million by Italian regulatory body for allegedly deceiving consumers about environmentally friendly practices (greenwashing)
Shein, a popular China-based fashion retail brand, has been fined €1 million by the Italian Competition Authority (AGCM) for greenwashing[1][2][3][4]. The fine was imposed on Infinite Styles Services Co. Limited, a Dublin-based company operating Shein's website in Europe.
The AGCM investigation, which started in 2024, targeted claims made under Shein’s #SHEINTHEKNOW, evoluSHEIN by design, and Social Responsibility sections[1][2][3][4]. The authority found Shein’s claims about product recyclability, use of “green fibres,” and circular waste-minimizing systems to be false, confusing, or lacking substantiation.
Moreover, AGCM criticized Shein’s greenhouse gas emissions reduction targets (25% by 2030, net zero by 2050) as vague and contradicted by Shein’s actual emission increases in 2023 and 2024[1][2][3][4]. The claims made by 'EvoluSHEIN by design' could potentially mislead customers into thinking a product is "full recyclable."
Shein cooperated with the AGCM investigation and took immediate actions following the concerns[1]. The company has strengthened its internal review processes and improved its website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.
This fine follows a €40 million penalty against Shein in France for misleading price and environmental claims, and ongoing probes by the European Commission related to Shein’s consumer and digital service compliance[2][3]. Greenwashing, a misleading marketing tactic used to catch a customer's eye on the grounds of sustainability, is a practice that many fast-fashion brands are often accused of.
Despite the regulatory actions, Shein's profit rose by 8.2% and revenue jumped by 23% in Marico Q1 FY26, due to strong performance in India and overseas business[5]. The company's commitment to cut greenhouse emissions by 25% by 2030 was questioned due to its vagueness and generality.
In conclusion, the AGCM's investigation and subsequent fine mark a significant regulatory action against fast fashion's ESG misrepresentations in Italy[1][2][3][4]. Consumers are encouraged to be vigilant and verify environmental claims made by fashion brands to ensure they are making sustainable choices.
References: 1. AGCM Press Release 2. Reuters Article 3. The Guardian Article 4. Bloomberg Article 5. Business Insider Article
- The financial implications of Shein's greenwashing incident extend beyond Italy, as the fashion retail brand was also fined €40 million in France for similar misleading claims.
- The science behind Shein's claims of product recyclability and use of 'green fibers' is questionable, considering the AGCM found the claims to be false, confusing, or lacking substantiation.
- The environmental-science aspect of Shein's business practices is under scrutiny, as the company's emission reduction targets are considered vague and contradictory to its actual emission increase in 2023 and 2024.
- Shein's focus on lifestyle and fashion-and-beauty products should include transparent and honest environmental practices, given the growing consumer preference for sustainable choices in the market.
- Businesses operating in the finance, fashion, and beauty sectors would benefit from stricter regulation to prevent practices like greenwashing that can tarnish their brand reputation and undermine consumer trust.
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