France’s competition and consumer watchdog has levied a €40 million ($47.17 million) fine against fast-fashion giant Shein for deceptive commercial practices related to false and misleading discounts on its French website, Reuters reported.
The penalty targets Infinite Style E-Commerce Co Ltd (ISEL), the company responsible for Shein’s sales in France. After nearly a year-long investigation, the agency found that Shein had misled consumers by advertising discounts based on inflated or fictitious original prices—a violation of French pricing rules.
“Shein’s commercial practices gave consumers a false impression of the benefits they were receiving,” the agency said in a statement. It confirmed that ISEL had accepted the fine and would not challenge the decision.
Under French consumer law, any advertised discount must be based on the lowest price offered by the retailer in the 30 days preceding the promotion. However, the watchdog found that Shein failed to follow this rule. In some cases, prices were even raised just before a “discount” was applied.
A comprehensive review of thousands of products on Shein’s French website, conducted between October 1, 2022, and August 31, 2023, revealed widespread irregularities. The investigation found that 57 percent of advertised discounts did not result in a lower price, 19 percent offered a smaller discount than advertised, and 11 percent were actually disguised price increases.
The regulator emphasized that such tactics distort consumer choice and harm market fairness. The case underscores growing concern among regulators about the transparency and ethics of fast-fashion retail, particularly online.
Founded in China, Shein has become a global powerhouse in budget fashion, appealing largely to young, price-sensitive shoppers. While it operates mostly online, the brand has recently increased its physical presence through pop-up stores in cities such as Paris and Singapore.
In response to the fine, Shein said in a statement that it was notified by the authority in March 2024 of breaches related to reference pricing and environmental regulations. The company stated that it had addressed all identified issues within two months.
“This means that all identified issues were addressed more than a year ago,” Shein said, adding that ISEL remains committed to complying with French regulations.
Nonetheless, the case adds to mounting scrutiny of Shein’s practices around the world, where regulators and advocacy groups continue to question its pricing methods, labor standards, and environmental footprint.
Shein did not respond to additional requests for comment at the time of publication.
