Italy Fines Shein US$1.1 Million for Misleading Green Claims

Italy’s competition watchdog has fined fast-fashion retailer Shein €1 million (US$1.16 million) for misleading environmental claims, marking the second penalty imposed on the company by a European regulator in just over a month.

The Autorità Garante della Concorrenza e del Mercato (AGCM) announced the fine on Monday against Infinite Styles Services Co. Limited, a Dublin-based company that operates Shein’s European website. The sanction follows an investigation launched in September 2023.

According to AGCM, Shein used vague, generic, and at times misleading language in its communications regarding environmental sustainability and social responsibility. The regulator stated that some website claims were “overly emphatic,” while others lacked key contextual information.

The authority also criticized claims related to Shein’s evoluSHEIN by Design collection, which the company markets as being made from more sustainable and responsible materials. AGCM found that descriptions of the garments’ recyclability were “false or, at the very least, misleading,” noting that the materials used are not fully recyclable under current systems.

The regulator warned that such statements could mislead consumers into believing the products are more environmentally friendly than they truly are.

In response, Shein said it had fully cooperated with AGCM and had taken immediate steps to address the concerns raised. “We have strengthened our internal review processes and enhanced our website to ensure that all environmental claims are clear, verifiable, and compliant with applicable regulations,” the company said in a statement.

AGCM also questioned Shein’s broader environmental goals, including a 25% reduction in greenhouse gas emissions by 2030 and a net-zero target by 2050. The regulator stated that these commitments lacked specificity and credibility, particularly as Shein’s emissions increased in both 2023 and 2024.

AGCM said its decision took into account Shein’s “heightened duty of care” given its operations in a “highly polluting sector, using highly polluting methods.”

This latest sanction follows a separate €40 million fine imposed by France in early July for similar violations, including deceptive discounting practices and misleading environmental statements.

AGCM holds authority over both consumer protection and competition regulation in Italy.