Latest news with #ItalianCompetitionAuthority
Fashion United
07-08-2025
- Business
- Fashion United
Greenwashing: Shein responds to million euro fine in Italy
Following a one million euro fine from the Italian Competition Authority, the Asian fast-fashion e-tailer Shein has shown remorse. In response to an enquiry, Shein stated that it had "immediately taken all necessary measures to address the criticisms raised". The Italian authority accused Infinite Styles Services Co Ltd, responsible for Shein in Europe, of greenwashing – misleading environmental advertising – and imposed the fine. According to the authority, the brand, known for "fast" and "super-fast" fashion, used misleading communication on its Italian website regarding the environmental properties of its products. The statements were vague, general, and misleading, the competition authority ruled on Monday. Shein now states that it has strengthened its internal review processes and "improved" its website "to ensure that all environmental claims are clear, specific, and comply with applicable regulations". The authority emphasises that the "#SHEINTHEKNOW" section contained environmental claims about the recyclability of the products, which proved to be false or at least misleading. The "evoluSHEIN by Design" collection was also advertised in a problematic way by referring to "green" fibres without mentioning specific environmental benefits. The advertising could therefore give the false impression that the products are entirely environmentally friendly and recyclable, which is not the case. In addition, it failed to mention that the line only makes up a small part of total production. Announcements to reduce greenhouse gas emissions by 25 percent by 2030 and to zero by 2050 were also unspecific and contradictory, the authority criticised. Emissions had actually increased in 2023 and 2024. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fibre2Fashion
05-08-2025
- Business
- Fibre2Fashion
Italian regulator fines luxury brand $4.06 mn for misleading claims
The Italian Competition Authority (AGCM) has fined Giorgio Armani SpA and GA Operations SpA €3.5 million (~$4.06 million) for unfair commercial practices under the consumer code, following an investigation into misleading sustainability and social responsibility claims. The violations occurred between April 22, 2022, and February 18, 2025. The companies made untruthful, unclear, and equivocal statements in their code of ethics and on their corporate websites, including Armani Values and Armani, where users were directed to content promoting the brand's ethical and social commitments, AGCM said in a press release. The Italian Competition Authority has fined Giorgio Armani and GA Operations €3.5 million (~$4.06 million)) for making misleading sustainability and social responsibility claims between April 2022 and February 2025. Investigations found poor safety, hygiene, and off-the-books work at subcontractors producing Armani leather goods, contradicting public statements. These claims were used as marketing tools to enhance the brand's reputation in sustainability and influence consumer purchasing decisions. However, investigators found a stark contrast between these public commitments and actual working conditions at suppliers and subcontractors producing the majority of Armani-branded leather bags and accessories. Many subcontractors reportedly removed safety devices from machinery to boost output, jeopardising worker health and safety. Sanitary and hygiene conditions were poor, and some employees were found to be working wholly or partially off the books. The AGCM noted that these issues were well known to the companies. During a Judicial Police inspection, a GA Operations quality control employee admitted to visiting one such subcontractor monthly for about six months. Additionally, in an internal document of Giorgio Armani SpA dated 2024—prior to the initiation of judicial administration proceedings requested by the Public Prosecutor's Office of Milan—it is even stated that 'in the best of the situations observed, the working environment is at the limit of acceptability; in other cases, there are serious concerns regarding its adequacy and health standards'. Fibre2Fashion News Desk (SG)
Yahoo
05-08-2025
- Business
- Yahoo
Shein fined $1.15m for deceptive 'green claims'
Singapore-headquartered fast-fashion online brand Shein is facing a €1m ($1.15m) fine for making misleading environmental claims online to promote and sell its branded clothing products. The fine, imposed by the Italian Competition Authority, targets Infinite Styles Services, the company responsible for managing Shein's product trading websites in Europe. The authority found that Shein's environmental assertions in the #SHEINTHEKNOW section, including claims about a "circular system" and product recyclability, were either false or confusing. The promotion of the evoluSHEIN by Design line was also criticised for implying that garments were made from entirely "sustainable" materials and were fully recyclable. This does not align with the reality of the fibres used and current recycling capabilities. Shein's statements about reducing greenhouse gas emissions by 25% by 2030 and achieving zero emissions by 2050 were deemed 'vague and generic', and are contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024. The authority said in the statement: 'Through its website and other promotional and/or informational online pages, the company disseminated environmental claims within the sections #SHEINTHEKNOW, evoluSHEIN and Social Responsibility that were, in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive.' Giving its decision, the authority highlighted the significant duty of care required from Shein, especially as it operates in the highly polluting "disposable fashion" sector. in July 2025, Shein was fined €40m by France's consumer watchdog for misleading pricing tactics - one of the largest penalties imposed under the country's regulations targeting deceptive online retail practices. In the same month, the authority also fined fashion giant Giorgio Armani and its unit GA Operations €3.5m ($4m) for engaging in deceptive commercial practices. "Shein fined $1.15m for deceptive 'green claims'" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Epoch Times
04-08-2025
- Business
- Epoch Times
Italy Slaps Shein With 1 Million Euro Fine Over Greenwashing Claims
The Italian Competition Authority (AGCM) has issued an 1 million euro fine ($1.16 million) to Chinese fast fashion platform Shein over 'misleading' and 'deceptive' environmental claims, the regulator said on Monday. The fine was imposed on Infinite Styles Services Co. Ltd, a Dublin-based company that manages Shein's websites in Europe.
Yahoo
04-08-2025
- Business
- Yahoo
Shein Fined 1 Million Euros by Italian Competition Authority for Misleading Sustainability Claims
MILAN — Shein has been fined by the Italian Competition Authority, or AGCM, for alleged misleading and omissive green claims, marking the second financial sanction by a European authority in a little more than a month. The Italian authority is imposing sanctions of 1 million euros on the ultra-fast-fashion giant claiming that statements available on its website and other informative or promotional online pages were 'in some cases vague, generic and/or overly emphatic; in others, misleading by omission or deception.' More from WWD Giorgio Armani Pushes Back at Italian Competition Authority's 3.5M-euro Sanction EXCLUSIVE: Fashion Rental Reduces Environmental Impact, According to New Study From The Volte Crocs Makes Commitment To UNICEF Mentoring Program Contacted by WWD, Shein issued a statement saying: 'Shein actively cooperated with the Italian Competition Authority (AGCM) throughout the entire proceeding, promptly taking all necessary steps to address the concerns raised as soon as it became aware of them. We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, specific and fully compliant with applicable regulations.' The AGCM refers particularly to Shein's sustainability claims on the 'Social Responsibility,' '#SheinTheKnow' and 'evoluShein' pages. In the latter the authority uncovered misleading information on circular economy practices and product recyclability, deeming them 'false or at least confusionary' The authority also highlighted that descriptions and promotional copy about the 'evoluShein by Design' line emphasized the use of 'green fibers' without detailing their sustainability credentials nor highlighting that they represent a small portion of the Shein product offering. 'These claims may lead consumers to believe not only that the 'evoluShein by Design' collection is made exclusively from 'eco-friendly' materials, but also that its products are fully recyclable — a notion that, given the fibers used and the recycling systems currently available, is not accurate,' the AGCM stated. It also refuted Shein's ambition to reduce GHG emissions by 2030 and achieve carbon neutrality by 2050, stating that they are contradicted by an increase in the e-tailer's emissions in 2024. To this end, the 2024 Sustainability and Social Impact Report released in June revealed growing carbon emissions. In particular, transport-related emissions rose 13.7 percent year-over-year to 8.54 million metric tons of CO2, largely due to increased reliance on air freight. This increase occurred despite Shein's stated commitment to optimizing logistics and shifting to lower-emission transport options. Shein made modest progress reducing its own Scope 1 and 2 emissions, such as offices and logistics centers, primarily through the adoption of solar power. But the company confirmed that Scope 3 emissions from its 7,200 contracted suppliers and manufacturers are still by far the largest share of its footprint. Shein said it plans to reduce Scope 3 emissions by 25 percent by 2030, using 2023 as a baseline. However, the company emphasized that progress 'depends entirely' on whether its independent suppliers choose to implement upgrades without direct funding from Shein. The company said it focuses on 'encouraging' partners to adopt more energy-efficient methods. The development in Italy comes as the ultra-fast-fashion giant's business practices are increasingly under scrutiny in many countries. For example, France has been taking aim at Shein from multiple angles. Last month, the country's anti-trust authority, the French Directorate General for Competition, Consumer Affairs and Fraud, or DGCCRF, fined the ultra-fast-fashion retailer a record 40 million euros claiming that Shein's pricing practices were deceptive, offering customers 'discounts' that didn't exist. In June, the French Senate passed a bill targeting Shein and other 'ultra-fast-fashion' players, including Temu, by proposing a tax on small parcels shipped from outside the European Union ranging from 2 to 4 euros per package. The fee is intended to slow the influx of packages from Chinese platforms to France. The bill needs to be validated by the EU, then will return to the Assembly where a stronger version passed in 2024, for a reconciliation process and final vote. That is expected to take place around October. A few days later, Shein executive chair Donald Tang took to the stage at Paris' VivaTech conference to defend the company's business model. During his appearance, he said Shein is 'not fast fashion,' instead it is 'fashion-on-demand' and only produces what the market wants. Meanwhile, last month Shein agreed to a settlement of $700,000, according to Napa County District Attorney Allison Haley, for a consumer protection lawsuit for unlawful shipping delays filed in Napa County Superior Court. According to the lawsuit, Shein had allegedly engaged in unlawful business practices by not properly notifying customers of shipping delays or offering them refunds when their orders were not shipped on time. The AGCM has been particularly active on the fashion front as of late. As reported, last week the Italian authority fined the Giorgio Armani company with 3.5-million-euro sanctions for alleged misleading advertising linked to sustainability statements contradicted by uncovered evidence of supply chain auditing negligence. Best of WWD Pandemic Has Stoked Appetite for French Luxury, Survey Finds U.S. Sets Strategic Vision for China Trade Policy Furmark's Farm-to-Shopfloor Tracing Tags Set for International Debut Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
