Fashion heavyweight Shein faced another financial penalty, sparking questions about its commitment to environmental responsibility or potential deception of consumers.
In a significant move to combat greenwashing in the fast fashion sector, the Italian Competition Authority (AGCM) has imposed a fine of €1 million on Chinese clothing retailer Shein. The fine, announced on Monday, was issued to Infinite Styles Services Co. Ltd., the Dublin-based operator of Shein’s European website.
The investigation, which began in September 2024, found that Shein’s website sections “#SHEINTHEKNOW,” “evoluSHEIN,” and “Social Responsibility” contained vague, generic, overly emphatic, misleading, or omitted information about environmental benefits. Specific issues included false or confusing claims about the recyclability of products and Shein’s circular design system to minimize waste. The company promoted an “evoluSHEIN” clothing line using terms like “green fibers” without clearly substantiating the environmental advantages, and misleadingly implied the collection was entirely recyclable, which it is not.
Shein’s statements about its greenhouse gas emission reduction targets were also criticized as vague and contradicted by actual emission increases in 2023 and 2024.
The podcast "Economia dia a dia", a daily show focusing on economic news, covered the story. However, it is important to clarify that Gustavo Carvalho, a journalist, was involved in the podcast, but he does not host it. The podcast is actually hosted by Juliana Simões. Gustavo Carvalho's exact role in the podcast is not specified in the provided text. The podcast is produced and broadcast by Expresso.
This regulatory action reflects increasing scrutiny across Europe to combat greenwashing and enforce transparent sustainability information in the fast fashion sector. As consumers become more conscious about the environmental impact of their purchases, companies like Shein must ensure their claims are accurate and substantiated.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
- The penalty imposed on Shein by the Italian Competition Authority (AGCM) highlights the importance of transparent sustainability information in the fashion-and-beauty industry, as businesses like Shein need to ensure that their claims about environmentally friendly practices, such as 'evoluSHEIN' green fibers, are substantiated and accurate.
- With increasing regulatory scrutiny across Europe, and a growing consumer awareness about the environmental impact of lifestyle choices, finance leaders in the fashion sector must prioritize sustainability measures, as a failure to provide accurate information about the environmental benefits of their products, such as recyclability, may result in penalties or damage to their brand reputation.
