Italian fashion retailer Shein penalized one million euros for deceitful environmental claims
Italian Authority Fines Fast-Fashion Retailer Shein €1 Million for Greenwashing
The Italian Competition Authority (AGCM) has imposed a fine of €1 million on fast-fashion retailer Shein for making misleading environmental claims in promoting its clothing products. The investigation, which began in September 2024, found that Shein's statements on its website sections "#SHEINTHEKNOW," "evoluSHEIN," and "Social Responsibility" were often vague, generic, overly emphatic, or omitted critical information, potentially misleading consumers about the environmental sustainability of Shein-branded clothing.
The ruling comes as the fashion sector is under pressure to address the climate and environmental impact of its activities and to tackle misleading green claims in its advertising. This fine against Shein follows a record €40 million fine against the company in France earlier in 2025 for misleading communications on price discounts and environmental impact.
Specific findings include misleading claims on circular design and product recyclability, the use of the term "green fibers" in the "evoluSHEIN" line without clear indication of the actual environmental benefits, and failure to clarify that the "evoluSHEIN" collection represents a marginal portion of Shein’s overall products. In addition, the AGCM stated that claims about the evoluSHEIN by Design collection could lead consumers to believe it is made solely from "sustainable" materials and fully recyclable, which does not reflect reality. Claims about the use of "green" fibers in the evoluSHEIN by Design line did not clearly specify the environmental benefits throughout the product's life cycle. The AGCM also found false or confusing claims about the "design of a circular system" and recyclability of products in Shein's #SHEINTHEKNOW section.
Shein cooperated fully with AGCM during the investigation and took immediate steps to address these concerns. Alongside the fine, Shein announced plans to reduce emissions in its supply chain, specifically in warehousing and logistics operations in China, and to divert waste from landfills.
In a statement, Shein's spokesperson stated that internal review processes have been strengthened and the website improved to ensure clear, verifiable, and regulatory-compliant environmental claims. The spokesperson added that the company fully cooperated with AGCM throughout the process and took immediate action to address the concerns raised.
This ruling marks a significant step in holding fashion retailers accountable for their environmental claims and is part of increasing regulatory scrutiny on the sector’s environmental impact. As consumers become more conscious of the environmental impact of their purchases, retailers must be transparent and accurate in their communications about sustainability.
- To improve its environmental credentials, Shein announced plans to invest in environmental-science research to enhance the sustainability of its materials and production processes in the fashion business.
- Given the rise of sustainability awareness in the lifestyle industry, it's imperative for fast-fashion businesses, like Shein, to accurately portray their commitment to environmental sustainability through science and finance.
- Amidst increased scrutiny from finance and healthcare regulators, environmental-science will play a critical role in evaluating the authenticity of a company's environmental claims, such as those made by Shein.
