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Reading: Italian Competition Authority Fines Shein €1 Million Over Misleading Environmental Claims
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Italian Competition Authority Fines Shein €1 Million Over Misleading Environmental Claims

Editorial
Last updated: August 4, 2025 10:18 am
Editorial
Published August 4, 2025
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The Italian Competition Authority (AGCM) has imposed a €1 million fine on Infinite Styles Services Co. Ltd, the company managing Shein’s e-commerce operations in Europe, for disseminating misleading and omissive environmental claims in the promotion and sale of Shein-branded clothing.

According to the AGCM’s decision in case PS12709, the fast-fashion giant misled consumers through vague, exaggerated, or deceptive “green claims” published on its website it.shein.com and associated promotional pages. The contested content appeared in the sections #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility.

The Authority found that Shein promoted claims such as designing a “circular system” and emphasizing the recyclability of its products without providing concrete or verifiable data. The evoluSHEIN by Design collection, marketed as sustainable, highlighted the use of “green” fibres but failed to clarify their limited share of overall production or the real environmental impact throughout the products’ lifecycle. Evidence also showed that many garments in the collection contained only partial percentages of recycled or responsibly sourced materials — sometimes as low as 30% — while consumers could mistakenly believe they were fully sustainable.

Equally problematic were Shein’s pledges to reduce greenhouse gas emissions by 25% by 2030 and achieve net zero by 2050. The AGCM noted that these goals were presented vaguely and contradicted by the company’s reported increases in CO₂ emissions in both 2023 and 2024. In fact, more than 99% of Shein’s emissions stem from its global supply chain and logistics, areas largely outside the company’s direct control.

The investigation, launched in September 2024, involved multiple extensions to allow Shein to respond. During the proceedings, the AGCM rejected Shein’s proposed commitments, which it deemed insufficient to address the misleading nature of the claims. The Authority stressed Shein’s heightened duty of care given the fast- and ultra-fast fashion sector’s well-documented environmental impact, including high levels of textile waste, reliance on synthetic fibres, and heavy use of air cargo shipping.

In its ruling, the AGCM concluded that Shein’s environmental communication strategy created “an image of sustainability that does not correspond to reality” and deprived consumers of essential information needed to make informed purchasing decisions.

The decision aligns with growing scrutiny of greenwashing practices across Europe. In May 2025, the European Commission and several national authorities jointly urged Shein to comply with EU consumer protection law regarding sustainability claims.

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