The Italian Competition Authority (AGCM) announced that it has fined global fashion online retailer Shein’s website operator Infinite Styles Services Co €1 million (USD$1.15 million) for greenwashing, after finding that the company used misleading environmental messages or claims in the promotion of its clothing products.
The announcement follows the launch of an investigation last year by AGCM into the company over concerns of misleading advertising claims made on the site regarding the environmental sustainability of Shein branded clothing. In a statement released announcing the fine, the AGCM said that it found that the company disseminated environmental claims that were, in some instances, vague, generic, or overly emphatic, and in others, misleading or omissive, on its website, and in other promotional or informational online pages.
In a statement provided to ESG Today, a Shein spokesperson said that the company “cooperated fully with the AGCM throughout this process,” and added that Shein “took immediate action to address the concerns raised as soon as we became aware of them.”
The ruling comes as the fashion sector has come under particular pressure to address the climate and environmental impact of its activities, and to tackle misleading green claims in its advertising, and follows a record €40 million fine against Shein in July in France for misleading communications on price discounts and environmental impact.
Among the findings, the AGCM said that in the company’s website’s #SHEINTHEKNOW section, environmental assertions regarding the “design of a circular system” or the recyclability of products, were found to be either false or at least confusing, while claims highlighting the use of “green” fibers used to promote garments in the evoluSHEIN by Design line did not clearly specify the substantial environmental benefits of these products throughout their full life cycle, and also failed to point out that the line represented only a marginal share of the total Shein-branded offering. The competition authority added that the claims could lead consumers to believe that the evoluSHEIN by Design collection is made solely from “sustainable” materials, and that its products are fully recyclable, which the AGCM said does not reflect reality.
In addition, the AGCM pointed out that statements by the company about its intention to reduce greenhouse gas emissions by 25% by 2030 and to reach zero emissions by 2050 are presented on its website in a vague and generic way, and have been contradicted by an increase in the company’s emissions in 2023 and 2024.
The Shein spokesperson said:
“We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”
