Shein Faces New Penalty in Europe Amid Greenwashing Allegations in Italy

Shein, under the European spotlight. After a first official sanction in France, and two other proposed fines in the UK and France, the Asian e-commerce company is now facing a new financial penalty of one million euros in Italy. The company, which operates in Europe through the company Infinite Styles Services, based in Dublin, has received a complaint from the competitiveness office of the transalpine country for carrying out greenwashing practices.

“The well-known brand, which operates in the fast and ultra-fast fashion sectors, adopted a misleading communication strategy regarding the characteristics and environmental impact of its textile products,“ the Agmc explained in a statement. According to the agency, some of the messages Shein advertised on its website regarding sustainable practices are too generic and, in some cases, misleading.

Among the specific allegations, the Agmc has highlighted claims relating to circular design and recyclability of products, grouped under a section of the website under the name #SheinintheKnow, and which the agency has described as false and misleading. The bureau also refers to the EvoluShein by Design category, by which it announced the use of sustainable fibers in the garments, without specifying the amount of this material used or its presence in the complete catalog.

Shein already accumulates several fine proposals in some European countries

According to Agmc, moreover, Shein’s responsibility is even greater, because it operates in “a sector with highly polluting practices”, such as fast fashion. The organization, in fact, has also questioned the Asian giant’s emission reduction targets, whereby it plans to reduce its emissions by 25% by 2030 and achieve climate neutrality by 2050, again branding them as vague and generic. “And which are also contradicted by a real increase in Shein’s greenhouse gas emissions in 2023 and 2024,“ he added.

This sanction follows another series of sanctions proposed by some European countries. In early July, the French antitrust office imposed the first, a fine of €40 million, accusing the company of carrying out a series of misleading discounts on its website, and which went against consumer protection.

Following that first action, France has also proposed a new fine of up to €150 million for violating the consent of consumers in the processing of their data. Shortly afterwards, Shein also received a proposed fine in the United Kingdom, of €5.8 million, in this case from a private company, which accuses the Asian giant of having dodged the payment of VAT at customs on the products it brought into the United Kingdom.