Italy fines fast-fashion giant Shein for 'green' claims
Image: File picture
Italy's competition watchdog said Monday it has fined the company responsible for Shein's websites in Europe one million euros ($1.15 million) for false and confusing claims about the e-commerce giant's efforts to be environmentally "green".
The AGCM watchdog accuses the China-founded fast-fashion colossal of having "adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products".
The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the authority said in a statement.
The AGCM accused it of "misleading and/or deceptive environmental messages and claims... in the promotion and sale of Shein-branded clothing products".
These were "in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive".
In particular, claims about the recyclability of products "were found to be either false or at least confusing", it said.
Consumers could easily be led to believe Shein products were made exclusively from sustainable materials and fully recyclable, "a statement which, given the fibres used and current recycling systems, does not reflect reality".
The AGCM also took issue with the retailer's claims it would reduce greenhouse gas emissions by 25 percent by 2030 and reach zero emissions by 2050.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
These "vague" pledges by a company which has seen phenomenal growth in recent years were "contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024", it said.
In a statement to AFP, Shein said it had "cooperated fully" with the watchdog's investigation and "took immediate action" to address the concerns, saying all environmental claims on the website were now "clear, specific and compliant with regulations".
Environmentalists have long warned of the damage wreaked by the fast-fashion sector's wasteful trend of mass-producing low-cost clothes that are quickly thrown away.
Fast fashion uses up massive amounts of water, produces hazardous chemicals and clogs up landfills in poor countries with textile waste, while also generating greenhouse gases in production, transport and disposal

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

IOL News
11 hours ago
- IOL News
Chinese scholarships awarded to South African students
The Chinese Ambassador to South Africa, Wu Peng, and the Chinese Embassy hosted a send-off ceremony for South African students who have been awarded Chinese government scholarships for 2025. Image: Oupa Mokoena / Independent Newspapers The Chinese Embassy in Pretoria hosted a send-off ceremony on Tuesday to celebrate South African students who received 2025 Chinese government scholarships, highlighting the importance of educational cooperation and cultural exchange. The Chinese Ambassador to South Africa, Wu Peng, congratulated the students on being awarded scholarships sponsored by the Ministry of Commerce (MOFCOM). A total of 11 South African students received the Chinese government scholarship, while eight students were awarded the Academic Education Programmes scholarship. The students were admitted to top-tier Chinese universities, pursuing degree programmes in fields essential to South Africa's national development, such as cybersecurity, engineering management, biological sciences, and healthcare. Wu encouraged them to immerse themselves in China's rich culture, witness its breathtaking landscapes, and experience the country's modern civilisation, including high-speed rail, digital payments, smart cities, and cutting-edge technologies. "Your experience will prove that choosing to study in China is the right decision," he said. He expressed appreciation to China's partners, including the Department of Higher Education and Training and the Department of Basic Education. "Educational cooperation is an integral part of the China-South Africa All-round Strategic Cooperative Partnership in the New Era," Wu said. He said the Chinese government scholarship served as a vital source of momentum for people-to-people exchanges, supporting South African youth in broadening their horizons, enhancing their capacities, and realising their dreams. Thandazo Sithole, one of the scholarship recipients, expressed her excitement about starting her studies abroad. She said she had always dreamed of doing something special, particularly in innovation and technology, and saw this scholarship as an opportunity to pursue her aspirations. Sithole described the scholarship as more than just an academic opportunity, but a chance for access, representation, and rewriting the narrative for African youth. On behalf of her fellow recipients, she said: "We are not just going to China as students, we are going as ambassadors of our country. This is an opportunity to immerse ourselves in a new culture, learn cutting-edge skills, and gain new ideas that can help shape a better world." Sandisa Maqubela, deputy director at the Department of Higher Education and Training's National Skills Fund, said the partnership between the department and China began in 2012 with an agreement to send 10 students to China and Sweden. While she acknowledged the department's value for its strategic partnership with China, she also noted that the current intake of students for 2025 was relatively small. "As the National Skills Fund, we also like to increase the number to the numbers that we previously had. I think pre-Covid we had more than 50 students who were based in China. Our commitment is that we really want to increase the number of young South Africans who are keen to become part of the global economy," she said.


The Citizen
18 hours ago
- The Citizen
Jobs and millions of rands lost – Here's how Temu and Shein are hurting SA
More than 34 000 jobs could be displaced by 2030 if Shein and Temu continue to gain market share. Most people are always looking to buy clothes at a cheaper price, and this is no different when it comes to South Africans. Offshore e-commerce platforms, particularly the two Chinese online stores Shein and Temu, are excelling in offering affordable clothing to people. However, this has negative effects on SA's economy and the clothing sector. A report released on Tuesday by the Localisation Support Fund (LSF) highlights that the growth of offshore e-commerce retailers in the country has resulted in millions of rands in sales and thousands of jobs being lost in local manufacturing. According to the report, Shein and Temu have collectively achieved approximately R7.3 billion in sales, resulting in an estimated R960 million in lost local manufacturing sales, 2 818 manufacturing jobs that may have materialised, and 5 282 unmaterialised retail jobs from 2020 to 2024. ALSO READ: Sars' Shein and Temu crackdown: Association warns of smuggling and job losses Decline in clothing sales The Retail-Clothing, Textile, Footwear and Leather (R-CTFL) sector has reported a decline in sales from R117 billion in 2011 to R105 billion in 2024. Focusing on online stores in the country, the report outlined two scenarios that could have resulted in the decline. The first scenario is that there has been a decline in the volume of units sold in the country's retial and clothing market since 2011. The second scenario is that there has been a shift to less expensive clothing due to the high cost of living. The second scenario is more likely as the report highlights that the presence of e-commerce platforms in the country increased between 2015 and 2024. 'In 2015, R-CTFL e-commerce accounted for 2.4% of the total R-CTFL market (R3.5bn) and has increased to 9.9% (R20.1 bn) in 2024.' The findings are supported by figures of The Foschini Group (TFG), Mr Price (MRP), Truworths, and Woolworths. Online shopping growing There could be a number of reasons why online shopping in the country has increased. The report attributes the growth of online shopping to internet availability, improved online payment security and associated consumer trust levels, increased smartphone adoption, improved logistics and last-mile fulfilment, and improved online offerings from retailers operating in SA. Online shopping in the country is expected to grow, with sales projected to reach 15.9% by 2030. 'Fieldwork conducted through retailer interviews indicated a strong consensus that the growth of e-commerce will be underpinned by South Africans having easier access to online shopping marketplaces through digitalisation, high smartphone adoption, and increased cashless nature of the South African economy.' Why people love Shein Moving to one of the biggest threats to the country's retail sector, the report outlines that the growth of Shein and Temu is underpinned by their mastery of speed, flexibility and cost management. Shein's strategic supplier network consists of two types of designers: Free on Board (FOB) designers (about 500) and original designers (estimated between 20 000 and 30 000), all operating under Shein's supplier management system. 'Interestingly, unlike other retailers who shy away from markdowns of more than 50%, Shein has a very aggressive stock clearance approach, discounting poor clearance items by up to 90%,' reads the report. More than 34 000 clothing retail and manufacturing jobs could be displaced by 2030 if offshore e-commerce platforms like Shein and Temu continue to gain market share. ALSO READ: Sectors showing growth in job opportunities in SA Temu offers lowest possible prices The report also notes that Temu's supplier network consists of low-cost manufacturers. The Chinese platform facilitates supplier competition, where suppliers compete for orders in bidding wars, with the lowest price winning the contract. 'This constant price competition ensures that Temu can continuously offer the lowest possible prices across its platform. 'Suppliers deliver selected goods to Temu's warehouses, where Temu handles logistics, customer service, after-sales support, and marketing, allowing manufacturers to focus purely on production without additional operational burdens, creating higher levels of price competitiveness.' Temu's delivery system The report highlights that Temu's logistics strategy is built around cost efficiency, using shipping methods to reduce expenses and maintain low consumer prices. 'Temu buys airline cargo space at discounted rates once a plane has already broken even, securing cheaper freight costs. The company combines heavy and lightweight goods in shipments to fully utilise cargo capacity, further reducing costs. 'Then orders are shipped directly from warehouses in China to consumers via sorting centres, allowing bypassing of certain tariffs.' Support needed 'The report also highlights lessons for local retailers and manufacturers. Shein and Temu have succeeded not only because of regulatory loopholes but through their highly digitised, data-driven supply chains and investment in supplier performance. 'With the right support, South African firms could leverage similar approaches to build more agile value chains, capable of competing globally.' Smash-and-grab economics Commenting on the findings of the report Simon Eppel, Director of Research at the SA Clothing and Textile Workers' Union (SACTWU) said, 'The surge in the market of cheap goods from these e-commerce offshore platforms is depressing the prices that local retailers can charge. 'This is smash-and-grab economics, an easy way to come into a country, grab what they can, and leave all the costs to us. The report shows that clearly and what is really worrying is the broader impact this will have. 'These offshore operations are causing real distress to competition, to the economy and to jobs. If we cannot succeed in mitigating the risk, then we should have banning these apps as an option.' Tax on Temu and Shein The removal of low-value parcel relief by the South African Revenue Service (Sars) in 2024 was seen as a positive step in saving jobs in the sector. Imports under R500 are now subject to the standard 45% customs duty and VAT, aligning them with other clothing imports. Eustace Mashimbye, CEO of Proudly SA, stated that they have driven the message of localisation and urged consumers to double down on procuring goods and services locally. 'To that end, we have launched an online store that provides consumers with much-needed accessibility to locally manufactured goods.' NOW READ: Four trends for e-commerce retailers to follow

IOL News
20 hours ago
- IOL News
China's top legislator hails mutual trust, win-win cooperation with Hungary
Hungarian President Tamas Sulyok (R) meets with China's top legislator Zhao Leji in Budapest, capital city of Hungary, July 25, 2025. Image: VCG China's top legislator Zhao Leji hailed the mutual trust and win-win cooperation between China and Hungary during an official goodwill visit from July 24 to 28. Zhao, chairman of the National People's Congress (NPC) Standing Committee, held separate meetings with Hungarian President Tamas Sulyok and Prime Minister Viktor Orban, and held talks with Speaker of the Hungarian National Assembly Laszlo Kover in Budapest during the visit. When meeting with Sulyok, Zhao conveyed Chinese President Xi Jinping's cordial greetings, noting that President Xi's successful state visit to Hungary in May 2024, which elevated China-Hungary relations to an all-weather comprehensive strategic partnership for the new era, has opened up broader prospects for friendly cooperation between the two countries. China is willing to work with Hungary to be good friends with mutual respect and mutual trust, good partners with mutual benefits and win-win results, and good brothers who understand and care for each other, he said. Zhao said China will join hands with Hungary to promote in-depth alignment between the Belt and Road Initiative (BRI) and Hungary's Eastern Opening strategy, complete the construction of landmark projects such as the Hungary-Serbia Railway with high quality, and encourage and support more exchanges in terms of culture, media and youth to promote closer people-to-people ties. Sulyok, for his part, asked Zhao to convey his sincere greetings to Xi. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Sulyok said that Hungary and China have been developing bilateral relations on the basis of mutual respect, mutual trust, mutual benefit and win-win results, which is of great significance and contemporary value. The Hungarian president said that participating in BRI is of vital importance to Hungary, and the Hungary-Serbia Railway project is a model of major project cooperation between the two sides. He also voiced hope that both sides will continuously deepen cooperation in areas such as green energy, artificial intelligence, digital economy, as well as humanities, youth and education. When meeting with Orban, Zhao said that in recent years, China-Hungary relations have achieved leapfrog development and are at their best in history. China appreciates Hungary's adherence to the one-China principle and is willing to continue strengthening mutual support with the Hungarian side, Zhao said. Zhao said China welcomes more high-quality agricultural and food products from Hungary, and expects Hungary to provide policy support and security guarantees for Chinese enterprises in Hungary. As this year marks the 50th anniversary of diplomatic relations between China and the European Union, Zhao said China hopes and believes that Hungary will continue to play an active role in promoting the healthy and stable development of China-EU relations. China will also work with Hungary to promote the cooperation between China and the Central and Eastern European Countries, Zhao said. Orban said that President Xi's state visit to Hungary last year was a milestone in the history of Hungary-China relations. He said the two countries' long-standing histories and cultures, both featuring independence and autonomy, serve as a solid foundation for their traditional friendship.