Shein Faces Hefty Fine for Greenwashing in Italy

Italy's competition authority fined Shein €1 million for misleading environmental claims. The investigation revealed that the fast fashion retailer's sustainability messages were sometimes vague and misleading. The fine reflects the AGCM's increased scrutiny on environmentally harmful fashion practices.

Italy's competition authority, AGCM, has imposed a fine of €1 million ($1.16 million) on Shein, the Chinese fast fashion online retailer, for deceiving customers with misleading information about the environmental impact of its products. This decision follows the conclusion of a 'greenwashing' investigation initiated by the Italian watchdog in September.

The AGCM criticized Shein for making vague and misleading sustainability and social responsibility claims on its website. The Italian authority underscored an 'increased duty of care' on Shein, given its operations in the environmentally harmful sector of fast fashion.

The company, which is operated in Europe by Dublin-based Infinite Styles Services CO. Limited, was contacted by Reuters for a comment. Shein previously stated its willingness to cooperate with Italian authorities and address any queries during the investigation initiated last year.

(With inputs from agencies.)