Background on Shein and Its Relevance
Shein, a Chinese fast-fashion company, has been fined $1 million by Italy’s Antitrust Authority for misleading customers about the environmental impact of its products. This penalty comes just over a month after France fined Shein €40 million for false discounts and misleading environmental claims.
The Italian Antitrust Authority’s Decision
The Italian Antitrust Authority (AGCM) imposed the fine on Infinite Styles Services Co. Limited, a Dublin-based company managing Shein’s European website, following an investigation into “greenwashing” initiated in September.
Misleading Environmental Claims
The AGCM stated that Shein’s website messages on environmental sustainability and social responsibility were “sometimes vague, generic, or overly emphatic,” and at other times “omitted or misleading.”
Shein’s claims about circular design and product recyclability were found to be “false or, at best, confusing,” according to the regulator. Additionally, the company exaggerated the eco-credentials of its “evoluSHEIN by design” collection.
False Eco-Material Claims
Shein promotes the “evoluSHEIN by design” collection as sustainably and responsibly made. However, the AGCM determined that consumers might believe this collection is made from eco-friendly and fully recyclable materials, which is false given the current fibers used and existing recycling systems.
Unclear Climate Commitments
The AGCM also disagreed with Shein’s vague and generic commitments to reduce greenhouse gas emissions by 25% by 2030 and achieve net-zero by 2050. The regulator pointed out that these pledges contradict Shein’s increasing emissions in 2023 and 2024.
Higher Duty of Care for Fast Fashion Sector
The Italian authority highlighted that its overall assessment was influenced by a “higher duty of care” expected from Shein, as it operates in a highly polluting sector using highly polluting methods, such as fast and ultra-fast fashion.
AGCM’s Role in Consumer Protection and Competition
The AGCM is responsible for both consumer protection and competition, ensuring fair business practices in the market.
Key Questions and Answers
- Who imposed the fine on Shein? The Italian Antitrust Authority (AGCM) fined Shein $1 million for greenwashing.
- What is greenwashing? Greenwashing refers to making false or misleading claims about a company’s environmental practices or products.
- What specific claims did the AGCM find misleading? The AGCM found Shein’s environmental sustainability and social responsibility messages vague, generic, or overly emphatic. They also deemed claims about circular design and product recyclability false or confusing.
- What were Shein’s climate commitments? Shein committed to reducing greenhouse gas emissions by 25% by 2030 and achieving net-zero emissions by 2050. However, the AGCM noted that these pledges contradict Shein’s increasing emissions in 2023 and 2024.
- Why did the AGCM impose a higher duty of care on Shein? The AGCM held Shein to a higher standard due to its operation in the highly polluting fast and ultra-fast fashion sector.
