France imposes a fine of EUR 40 million on SHEIN for deceitful business practices
In a significant move, SHEIN, the Singapore-headquartered fast fashion retailer, has been fined €40 million by France's Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) following a year-long investigation. The fine, announced on July 3, 2025, is in response to SHEIN's deceptive commercial practices and misleading environmental claims.
The investigation, which began in 2022, was prompted by concerns that SHEIN (operated locally by Infinite Style E-commerce) had misled consumers regarding price reductions and environmental impact. The DGCCRF found that SHEIN had frequently shown false discounts, inflated crossed-out prices, and permanent promotions that did not comply with French consumer law. As a result, 57% of products had no actual discount, 19% had small discounts, and 11% had price increases disguised as discounts.
In addition, SHEIN was fined nearly €1.1 million for failing to provide accurate information about the environmental impact of its products, including the lack of disclosure about plastic microfibre pollution caused by over 700 products during washing.
This penalty is part of France’s broader effort to combat social and environmental harm linked to ultra-fast fashion companies. Last month, the French Senate near-unanimously voted in favour of a revised bill aimed at regulating the ultra-fast fashion industry. The proposed measures in the bill include eco-taxes, mandatory sustainability disclosures, and advertising bans.
At the European Union level, the European Commission and national consumer protection authorities coordinated a probe into SHEIN's practices, resulting in a finding of illegal commercial practices in May 2025. The Consumer Protection Cooperation (CPC) Network has called on SHEIN to respond within one month to their findings and propose measures to address the consumer law violations. If SHEIN fails to comply, further enforcement, including fines based on its EU turnover, may follow.
Regarding Italy and Ireland, the search results do not provide specific updates or enforcement actions against SHEIN similar to those in France. However, since the European Commission and several EU member states' consumer watchdogs are involved in joint oversight and enforcement activities, it is likely that investigations or monitoring are ongoing in other European countries, though no concrete penalties or accusations have been publicly detailed yet for these countries.
The SNE discovered that SHEIN was unable to justify the environmental claims it had promoted to consumers, including a claim to limit its environmental impact by reducing its greenhouse gas emissions by 25%. The Italian Competition and Markets Authority launched a greenwashing-based probe into SHEIN last year over concerns that the company had misled consumers with deceptive claims about its sustainability practices.
The DGCCRF cautioned consumers to be wary of overly attractive promotional offers, which can be misleading. The fine imposed on SHEIN by the DGCCRF was the result of a settlement procedure and the approval of the Paris public prosecutor.
This marks a significant crackdown on the company’s commercial and greenwashing practices in Europe. Companies overstating their environmental and sustainable development have come under increasingly intense scrutiny, with France being one of the first countries to criminalise the practice, introducing a prohibition of greenwashing in its 2021 Climate and Resilience Law. The bill seeks to address four critical concerns: misleading advertising, excessive consumption, environmental action, and the safeguarding of the country's domestic fashion sector.
SHEIN has accepted the penalty. An array of European regulators are increasingly putting the heat on SHEIN over deceptive commercial practices, consumer protection violations, and greenwashing conduct. The company faces ongoing scrutiny and potential penalties in various European countries, reflecting a concerted effort by multiple member states to regulate ultra-fast fashion deceptive marketing and environmental claims.
- The investigation into SHEIN's practices, prompted by concerns over misleading price reductions and environmental impact, also uncovered greenwashing, with SHEIN unable to justify its claims about reducing greenhouse gas emissions.
- With SHEIN having accepted a €40 million fine for deceptive commercial practices and misleading environmental claims in France, European regulators are increasingly scrutinizing the company for consumer protection violations and greenwashing conduct, potentially leading to further penalties in various European countries.
