SHEIN's sustainability claims to be vague, false or misleading

In a landmark decision against greenwashing, Italy's competition authority has fined the fast-fashion giant Shein €1 million for misleading consumers about the environmental impact of its products. The penalty comes after a months-long investigation by the Italian Competition Authority (AGCM) that found the company's sustainability claims to be vague, generic, and, in some cases, false or misleading. This is the second such fine for Shein in Europe, following a similar penalty in France.

The AGCM's investigation focused on several of Shein's online claims and collections, including its "evoluSHEIN by design" line. The regulator concluded that Shein's marketing led consumers to believe these products were made from eco-friendly materials and were fully recyclable, which the authority found to be untrue given the fibers used and the current recycling systems in place. The AGCM also took issue with Shein's broader, public commitments to reduce greenhouse gas emissions by 25% by 2030 and achieve net-zero emissions by 2050, noting that these pledges were contradicted by an actual increase in the company's emissions in 2023 and 2024.

The Italian authority emphasized that Shein, as a company operating in a "highly polluting sector," has an increased duty of care to be transparent and accurate with its environmental messaging. The fine highlights a growing global crackdown on greenwashing, where companies are held accountable for overstating their eco-friendly credentials to appeal to environmentally conscious consumers. In response, Shein stated that it had cooperated fully with the investigation, took immediate action to address the concerns, and has since updated its website to ensure all environmental claims are clear, specific, and compliant with regulations.

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