Italy’s competition watchdog has fined fast fashion giant Shein €1 million ($1.16 million) for greenwashing, accusing the company of misleading consumers about the environmental impact and sustainability of its products.
The penalty was imposed on Infinite Styles Services Co. Limited, the Dublin-based operator of Shein's European website, following a months-long investigation launched in September 2024 by the Italian Competition Authority (AGCM), News.Az reports, citing Reuters.
This is Shein’s second major fine in Europe in a short span. On July 3, French regulators hit the company with a €40 million fine over fake discounts and similarly misleading environmental claims.
In its ruling on Monday, the AGCM said Shein's marketing around sustainability was “vague, generic, overly emphatic, or misleading”—particularly in reference to its ‘evoluSHEIN by design’ collection.
The regulator concluded that claims about product recyclability and circular system design were either false or confusing. Shein, it noted, presented the line as eco-friendly despite using materials that were not easily recyclable given current technology and systems.
The AGCM also criticized Shein’s publicly stated goals to cut greenhouse gas emissions by 25% by 2030 and reach net-zero emissions by 2050. The authority said these targets were contradicted by Shein's rising emissions in 2023 and 2024, pointing to a disconnect between corporate pledges and actual performance.
“Because it operates in a highly polluting sector and with highly polluting methods, Shein carries an increased duty of care,” the AGCM said in a statement.
The Italian regulator emphasized its consumer protection mandate, warning that misleading sustainability claims can skew consumer choices in favor of companies that appear more environmentally responsible than they actually are.
At the time the investigation began, Shein had said it would fully cooperate with Italian authorities. As of Monday, the company had not issued a public response to the fine.
Founded in China and now operating globally, Shein has gained massive popularity for its ultra-cheap fashion offerings. However, its environmental practices and labor conditions have been under intense scrutiny, particularly amid speculation of a planned IPO in London.
