Latest news with #evoluSheinbyDesign
Daily Mirror
07-08-2025
- Business
- Daily Mirror
Major fashion brand slammed with €1m fine for greenwashing practices in back-to-back blow
The online fast fashion retailer, Shein, has been fined by Italy's antirust authority AGCM for "misleading or omissive" environmental claims only one month after a hefty fine from French regulators For the second month in a row, online fast fashion retailer Shein has been hit with a hefty fine for misleading customers about the environmental impact of its products. On Monday, August 4, Italy's antitrust authority, AGCM, fined Shein €1m (£870,600) for 'misleading or omissive' environmental claims. The new fine comes just a month after France's Directorate for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) fined Shein €40m (£34.8m) for its "commitments concerning environmental claims" as well as for misleading customers about price reductions. Following an investigation last September, AGCM concluded that the sustainability messages on Shein's website were inaccurate due to their 'vagueness and generality, and, in other cases, from their misleading nature, omission, and/or contradiction with other information'. READ MORE: 'I switched my perfume to a cheaper alternative - and I've never had so many compliments' The Italian authority stated that recyclability and product circularity claims made in the #SHEINTHEKNOW section of the retailer's website were 'found to be either false or at least confusing'. It also found that claims made by the brand to promote its evoluShein by Design line may have led consumers to believe the collection was made entirely from sustainable materials. The investigation also found that the fast-fashion company made misleading and vague statements about its intention to reduce greenhouse-gas emissions by 2030 and to reach zero emissions by 2050. According to AGCM, these statements were contradicted by the fact that Shein's greenhouse-gas emissions have increased since 2023. The Italian fine was imposed on Infinite Styles Services Co. Limited, a Dublin-based company that operates Shein's website in Europe. Shein has not yet responded to The Mirror 's request for comment. However in a statement to The Guardian, Shein said: 'We have cooperated fully with the AGCM throughout this process, and took immediate action to address the concerns raised as soon as we 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 compliant with regulation.' On the same day the Italian fine was announced, Shein shared an update about its sustainability effort detailing the integration of 'new energy vehicles' for internal warehouse transport and news that four new Shein-managed facilities achieved a 'Zero Waste to Landfill' certification. The certification is awarded by the third-party certification organisation TÜV Rheinland. Pressure from European authorities has been mounting on the online retailer over the course of the year. A few months before the France fine, the European Commission found Shein guilty of engaging in illegal commercial practices under EU law following an investigation with national consumer protection authorities. The Italian fine was lenient compared to the French fine, but France has been leading the charge against the fast fashion retailer in a bid to both protect consumers and French businesses. On June 10, the French Senate overwhelmingly approved legislation to regulate 'ultra' fast fashion giants Shein and Temu, passing a bill which would sanction companies with low 'eco-scores' and prohibit fast fashion advertisements. The minister for ecological transition, Agnes Pannier-Runacher, called the bill "a major step in the fight against the economic and environmental impact of fast fashion and a strong signal sent to businesses and to consumers'. The Mirror reached out to Italy's AGCM and France's Directorate for Competition, but neither provided any further comment.
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
