Latest news with #ISEL
Yahoo
2 days ago
- Business
- Yahoo
France Fines Shein $47 Million for False Discounting and Deception
In France, Shein's going from 'c'est la vie' to 'pay the fee.' French regulators announced the culmination of nearly a year-long investigation Thursday, saying that Infinite Style E-commerce Ltd. (ISEL), which operates sales on behalf of Shein in the country, misled consumers on discounting and on its sustainability-related claims. More from Sourcing Journal Shein Faces Copyright Infringement Complaint from Brandy Melville Shein Reportedly Making Plans With Reliance to Export India-Made Goods Shein's Climate Ambitions Have Been Validated. Now What? France's General Directorate for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) said it had doled out a €40 million ($47 million) fine to the company as a result of the now-concluded investigation, which ran from October 2022 to August 2023. According to the announcement, French law requires that the reference price posted on an e-commerce player's site be the lowest price the company has charged for the item within the past 30 days. The agency said 57 percent of the listings it tracked 'did not offer any real price drop,' as translated from French. An additional 19 percent of products 'showed a smaller reduction than claimed' and 11 percent 'were actually price increases.' The agency said that by 'artificially inflating' reference prices ahead of marking them down for sales, the company wrongly created the impression that consumers were receiving better deals than they actually had. The announcement from the antitrust watchdog also stated that ISEL and Shein could not properly prove the environmental claims made on its site. It particularly took issue with the company planned to reduce its greenhouse gas emissions by 25 percent. According to the agency, ISEL accepted the charge it had received. Shein did not immediately return Sourcing Journal's request for comment, but a spokesperson reportedly told Reuters that the agency had shared information about the regulatory issues in March 2024, which led ISEL to fix such issues within months. 'This means that all identified issues were addressed more than a year ago,' Shein reportedly said. According to Reuters, Shein also made it clear that ISEL intends to comply with all applicable French laws going forward. This is far from Shein's first time in the spotlight for regulatory concerns. The company has had issues with other nations across the globe. Last year, Italy announced it would start a probe into the company for greenwashing. It has also come under fire for potential violations of the EU Digital Services Act, under which it is categorized a Very Large Online Platform (VLOP), and thus, must adhere to the strictest rules put forth by the regulation. South Korea's government last year said it had found toxic chemicals in a a Shein product. False discounting issues have also become more frequent in U.S. courts; in recent years, companies like Under Armour, Fashion Nova, New York & Company, Old Navy and others have been accused of false pricing schemes by consumers.
Canada News.Net
7 days ago
- Business
- Canada News.Net
Shein accepts 40 million euro French fine for fake price reductions
PARIS, France: Fast-fashion giant Shein has been fined 40 million euros by France's antitrust authority over deceptive discount practices that regulators say misled shoppers about the actual value of its deals. The fine follows a nearly year-long investigation into the company's pricing tactics. The French agency—responsible for both consumer protection and competition oversight—announced on July 3 that Infinite Style E-Commerce Co Ltd, which manages Shein's sales in France, had violated rules around discount transparency and accepted the penalty. Under French law, the reference price used to advertise a discount must be the lowest price offered by the retailer over the previous 30 days. Regulators found that Shein often ignored this rule, sometimes even raising prices before applying a discount, thereby inflating the perceived deal. The watchdog concluded that Shein's practices had "deceived consumers about the authenticity of discounts they could benefit from." The retailer, founded in China and now operating globally, responded by saying it had been informed of the breaches in March 2023 and had taken steps to address them within two months. "This means that all identified issues were addressed more than a year ago," Shein said in a statement, adding that ISEL remains committed to complying with French regulations. In addition to the pricing violations, the antitrust agency also cited breaches of environmental regulation, though it did not detail those in the fine announcement. Shein has faced growing scrutiny in Europe over its marketing tactics and environmental footprint, even as it gains popularity among young shoppers for its low-cost, trend-driven products.
Time of India
04-07-2025
- Business
- Time of India
France fines Shein 40 million euros for deceptive business practices
France's antitrust agency said on Thursday it had fined China-founded fast-fashion retailer Shein 40 million euros ($47.17 million) for alleged deceptive business practices including misleading discounts, following a nearly year-long probe. The agency, in charge of consumer protection as well as competition, said Infinite Style E-Commerce Co Ltd, which handles sales for the Shein brand , had misled customers about discounts, and that the company had accepted the fine. Under French regulations, the reference price for any discount is the lowest one given by a retailer during the 30 days preceding the offer. Shein infringed that rule by not taking into account previous offers, and sometimes increasing the price before applying a discount, the agency said. It said its investigation showed the company "deceived consumers about the authenticity of discounts they could benefit from." The probe, conducted across thousands of products on Shein's French site between October 1, 2022 and August 31, 2023, found 57% of advertised deals were not, in fact, offering a lower price; 19% had less of a discount than advertised; and 11% were in fact price increases. In a statement, Shein said the antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. "This means that all identified issues were addressed more than a year ago," Shein said, adding that ISEL was committed to complying with French regulations.
Time of India
03-07-2025
- Business
- Time of India
France fines one of Amazon's biggest Chinese retail competitors for misleading customers about discounts
Note: AI image France's antitrust agency has announced that it has fined fast-fashion giant Shein 40 million euros ($47.17 million) for alleged deceptive business practices, specifically concerning misleading discounts . The fine comes after a nearly year-long investigation into the China-founded retailer, which is one of Amazon's biggest competitors in the US. The agency, responsible for both consumer protection and competition, stated that Infinite Style E-Commerce Co Ltd (ISEL), the entity managing sales for the Shein brand, misled customers about the authenticity of discounts, as per news agency Reuters. What the rules say and findings of the French agency Under French regulations, a discount's reference price must be the lowest price offered by the retailer in the 30 days prior to the promotion. The investigation found that Shein failed to adhere to this rule, sometimes even increasing prices before applying a supposed discount, the report said. The probe, which analysed thousands of products on Shein's French website between October 1, 2022, and August 31, 2023, revealed significant discrepancies. It found that 57% of advertised deals did not, in fact, offer a lower price, 19% had less of a discount than advertised, and a surprising 11% were actually price increases. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo What Shien has to say on 40-million-euro fine In response, Shein stated that ISEL was informed of the breaches related to reference pricing and environmental regulations in March of last year. The company claims ISEL implemented corrective actions within the subsequent two months, asserting that "all identified issues were addressed more than a year ago" and that ISEL is committed to complying with French regulations. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business of Fashion
03-07-2025
- Business
- Business of Fashion
France fines retailer Shein 40 million euros for misleading discounts
France's antitrust agency said on Thursday it had fined China-founded fast-fashion retailer Shein 40 million euros ($47.17 million) for alleged deceptive business practices including misleading discounts, following a nearly year-long probe. The agency, in charge of consumer protection as well as competition, said Infinite Style E-Commerce Co Ltd, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. Under French regulations, the reference price for any discount is the lowest one given by a retailer during the 30 days preceding the offer. Shein infringed that rule by not taking into account previous offers, and sometimes increasing the price before applying a discount, the agency said. It said its investigation showed the company 'deceived consumers about the authenticity of discounts they could benefit from.' The probe, conducted across thousands of products on Shein's French site between October 1, 2022 and August 31, 2023, found 57 percent of advertised deals were not, in fact, offering a lower price; 19 percent had less of a discount than advertised; and 11 percent were in fact price increases. In a statement, Shein said the antitrust agency had informed Infinite Style E-commerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. 'This means that all identified issues were addressed more than a year ago,' Shein said, adding that ISEL was committed to complying with French regulations. By Makini Brice, Helen Reid; Editors: Charlotte Van Campenhout, Susan Fenton, Bernadette Baum Learn more: Shein to File Confidentially for Hong Kong IPO, Sources Say Shein aims to submit the filing confidentially as soon as this week, a source familiar with the matter told Reuters. A second source said the filing was expected to be made by Monday.
