Shein was fined by the Competition and Market Authority for 1 million euros. The accusation against him is to have used deceptive and omissive advertising in promoting the sale of fashion products, specifically those types of products declared “sustainable”.
The customers would therefore have been deceived with the use of claims with a green guise as “social responsibility”, use of green fiber and an alleged circular design system or product recyclability. According to the antitrust, if not entirely false, such advertisements are confusing and not clear.
Antitrust against Shein: 1 million euro fine
The Competition and Market Authority accuses Infinite Style Services (name in Europe for the distribution of Shein products) of having made a false promotion of clothing products present in its online catalog. It is accused of a deceptive and omissive conduct through promotional advertisements, but also information attributable to the entire period of 2023.
Different points were presented against Shein.
Deceptive statements about Sheintheknow
Affirmations contained in the section of the #Sheintheknow site, a page that explains the circularity of production, but also the quality of the products and responsible consumption through statements of reduction, reuse and recycling of clothing.
According to the antitrust, there are vague and generic indications and not supported by objective data and tests.
Deceptive statements on Evolushein
Affirmations contained in the section of the “Evolushein” environmental sustainability section, presented in 2022 with a first collection declared sustainable because it is produced with stated materials eco -sustainable.
However, there are no indications on the responsible origin of the materials used to create every single garment and there is no information regarding recyclability, water pollution, CO2 emissions for production, transport, disposal and much more.
Declarations on social responsibility
Affirmations relating to the reduction of the entry of greenhouse gases in the section dedicated to “social responsibility”, where Shein declares that he wants to reduce emissions, but there are no data on the matter.
The tests of Greenwashing
In the document published by the AGCM, or the provision, the process is told for the acquisition of the evidence of the accusations made against Shein. In the measure we want to remember that Shein is a well -known manufacturer of the Fast and Ultra Fast Fashion sector.
Its characteristics are incompatible with the green and sustainable messages of the advertisements on the site. The business model is reported as the following:
- enormous volumes and variety of clothing sold at low prices and conceived for limited use, that is, the useless, to pursue new fashions and trends;
- shipments quickly, mainly from China by plane or sea;
- high levels of waste intended for disposal, as well as the release of microplastics;
- high environmental impact, also for the massive use of data center.
The problems of environmental and human sustainability are not mentioned in detail, but it is clear the message that the document wants to send: more the tests that tell of a reality that is not compatible with environmental sustainability compared to vague insertions of “green” nature.
This makes, according to the antitrust, the “sustainable” operations of deceptive and therefore accused of Greenwashing.
Shein defends himself: a “different productive model”
Shein says through his press office that he has
Actively collaborated with the AGCM throughout the procedure, promptly adopting all the measures necessary to respond to the critical issues raised as soon as it came to know.
The press release also reads:
We have strengthened our internal revision processes and improved the website, with the aim of ensuring that all environmental declarations are clear, specific and compliant with current legislation.
After the Antitrustust had contested Shein’s Green and Sustainable Campaigns, this in 2024 defended himself by contesting the hypothesis of the environmental impact of his production model.
According to Shein, in fact, its business model is different from traditional because it is designed to align the demand for customers with the supply of products and minimize the inventory waste.
Compared to the environmental issue and the materials used, Shein says to respect quality standards. In addition, he is working, he says, to use only materials of responsible origin, with certification from independent third parties, and to be improving water management.
Sustainable advertisements are limited to experimental programs, as in the case of retreat and recycling of clothing or pop-up events in the United States, Mexico and Europe.
In addition, in the case of #Sheintheknow, it would only be an info-marketing communication initiative intended for the English market to intensify the interaction with the community on social media and promote initiatives and events.
Therefore, it closes what are the problems presented by the Antitrustust by replying that it is true that the products cannot be recycled in other clothing, but it cannot be said that they cannot be recycled or reused as industrial fabrics, padding, mattresses etc.
On the issue of the objective to reduce emissions by 25% by 2030, Shein does not believe that they are misleading, because the emission reports of 2022 and 2023 are contested, but should be considered the most updated ones.
All this did not convince the antitrust, which presented further reasons to get to the resolution: a fine of 1 million euros for having deceived consumers with false or unclear advertising regarding the sustainability of the products and the environmental impact of their production model.
AGCOM on the side of consumers
The fine in Shein is considered a victory by those who fight to offer consumers full awareness during purchases. Altroconsumo, for example, fights against Greenwashing, deceptive advertising with a series of initiatives to inform consumers and help them understand what the “fake” ads are.
“This sanction shows that our complaints were founded. Shein does not just use Dark Pattern to push to compulsive purchases, but also mind on the environmental impact,” comments Anna Vizzari, coordinator Public Affairs of Altroconsumo. For Vizzari, that of Shein is a coordinated strategy to hide reality, that is, that the Fast Fashion is unsustainable.
But Shein is not the only one: the techniques to convince in a misleading way to make purchases of which you do not need are common on online clothing sites. Altroconsumo proposes a new consumption model and has launched ‘committed to changing’, a project that aims to build a new culture of more conscious and sustainable consumption, also on the theme of fashion.
