Italy fines fast-fashion giant Shein for ‘green' claims
The AGCM watchdog accuses the China-founded fast-fashion colossal of having 'adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products'.
The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the watchdog said in a statement.
The AGCM accused it of 'misleading and/or deceptive environmental messages and claims… in the promotion and sale of Shein-branded clothing products'.
These were 'in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive'.
In particular, claims about the recyclability of products 'were found to be either false or at least confusing', it said.
Consumers could easily be led to believe Shein products were made exclusively from sustainable materials and fully recyclable, 'a statement which, given the fibres used and current recycling systems, does not reflect reality'.
The AGCM also took issue with the retailer's claims it would reduce greenhouse gas emissions by 25 percent by 2030 and reach zero emissions by 2050.
These 'vague' pledges by a company which has seen phenomenal growth in recent years were 'contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024', it said.
Environmentalists have long warned of the damage wreaked by the fast-fashion sector's wasteful trend of mass producing low-cost clothes that are quickly thrown away.
Fast fashion uses up massive amounts of water, produces hazardous chemicals and clogs up landfills in poor countries with textile waste, while also generating greenhouse gases in production, transport and disposal.
Shein did not immediately respond to a request for comment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
14 hours ago
- Express Tribune
Senate panel voices concerns over KCR revival delays
The Senate Standing Committee on Railways has raised concerns over encroachments on railway land, the growing burden of pension payments, delays in the revival of the Karachi Circular Railway (KCR), and challenges surrounding the ML-1 project, in a meeting chaired by Senator Jam Saifullah Dharejo. Committee members including Senator Nasir Mehmood, Senator Asad Qasim, and Senator Dost Mohammad Khan were also in attendance. The committee visited the Divisional Superintendent (DS) office of Pakistan Railways, at the City Station where DS Mehmoodur Rehman Lakho gave a briefing on the operational, financial, and land-related challenges facing the department. Railway officials noted that the organisation is grappling with outdated infrastructure, limited financial resources, and declining revenues, with these issues not only affecting day-to-day services but also hampering progress on expansion projects. Further, they noted that a significant portion of the budget is being consumed by rising pension obligations, impacting development. The committee was informed that a strategy is being formulated to enhance the security of railway operations nationwide, with particular focus on the Karachi to Hyderabad section. Steps are also being taken to modernise surveillance systems, strengthen coordination with law enforcement, and reinforce the security framework, ensuring the safe movement of passengers and freight. Speaking to the media, Dharejo described the encroachment of railway land and the prolonged delay in the KCR revival as major challenges, but noted that discussions are ongoing with the government to reintegrate the KCR project, along with its inclusion in the China-Pakistan Economic Corridor (CPEC). The committee chairman also provided updates on recent consultations with Chinese companies regarding the ML-1 project, the country's largest and most expensive rail infrastructure initiative.
Business Recorder
a day ago
- Business Recorder
Italy fines fast-fashion giant Shein for ‘green' claims
ROME: Italy's competition watchdog said Monday it has fined the company responsible for Shein's websites in Europe one million euros ($1.15 million) for false and confusing claims about the e-commerce giant's efforts to be environmentally 'green'. The AGCM watchdog accuses the China-founded fast-fashion colossal of having 'adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products'. The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein's product trading websites in Europe, the watchdog said in a statement. The AGCM accused it of 'misleading and/or deceptive environmental messages and claims… in the promotion and sale of Shein-branded clothing products'. These were 'in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive'. In particular, claims about the recyclability of products 'were found to be either false or at least confusing', it said. Consumers could easily be led to believe Shein products were made exclusively from sustainable materials and fully recyclable, 'a statement which, given the fibres used and current recycling systems, does not reflect reality'. The AGCM also took issue with the retailer's claims it would reduce greenhouse gas emissions by 25 percent by 2030 and reach zero emissions by 2050. These 'vague' pledges by a company which has seen phenomenal growth in recent years were 'contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024', it said. Environmentalists have long warned of the damage wreaked by the fast-fashion sector's wasteful trend of mass producing low-cost clothes that are quickly thrown away. Fast fashion uses up massive amounts of water, produces hazardous chemicals and clogs up landfills in poor countries with textile waste, while also generating greenhouse gases in production, transport and disposal. Shein did not immediately respond to a request for comment.
Business Recorder
a day ago
- Business Recorder
Wall Street Week Ahead: AI gains and strong earnings support Wall Street as tariff woes linger
NEW YORK: With more than half of second quarter earnings reported and stocks near record highs, company results have reassured investors about the artificial intelligence trade that has energized Wall Street, even if tariff worries curtailed buying. With results in from 297 of the S&P 500 companies as of Thursday, year-on-year earnings growth for the second quarter is now estimated at 9.8%, up from 5.8% estimated growth on July 1, according to LSEG data. Next week investors will get a peek at earnings from Dow Jones Industrial Average constituents Disney, McDonald's and Caterpillar, for a look at the broader economy. Strong profit reports for these companies could propel the Dow, trading just shy of its December record high, to a fresh peak. Some 81% of the companies have beaten analyst expectations on earnings, above the 76% average for the past four quarters. 'The earnings season has been unambiguously better than expected,' Art Hogan, chief market strategist at B. Riley Wealth in Boston, said. The strength of corporate earnings is particularly reassuring for investors after the pummeling sentiment took in the prior quarter due to the twin threats of tariffs and worries over flagging economic growth. 'The first quarter was a bit more mixed and you had some questionable economic data ... which I think gave the market some pause,' said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. 'But the second quarter seems to have just been a turnaround,' Ghriskey said. The strength of results for names linked to the artificial intelligence trade - the investment thesis that AI will be a transformative force, driving a significant portion of future economic growth and company profits - is particularly heartening, investors and analysts said. 'Overall it has been mega caps, growth/technology/AI that is driving a lot of the results,' Ghriskey said. 'This is where we want to be exposed in terms of companies ... we're at maximum equity exposures and we're comfortable there.' Having boosted the market for several quarters, the trade ran into rough waters at the start of the year as the emergence of Chinese-founded artificial intelligence startup DeepSeek rattled investors, stoking concerns over heightened competition that could disrupt the dominance of established tech giants at the heart of the AI trade, including Nvidia. Strong results from Microsoft and Meta Platforms reassured investors that massive bets on AI are paying off. Worries over AI demand appear overblown, Macro Hive research analyst Viresh Kanabar said. The trade related tumult earlier this year prompted many investors to pare equity exposure, particularly to higher-risk growth stocks. Even after the market rebound - the S&P 500 is up about 6% for the year and near a record high - institutional investors have been slow to return to equities. Overall, investors' equity positioning is still only modestly overweight, according to Deutsche Bank estimates. Strength in earnings from AI and technology names could draw more investors and lift markets further in coming weeks, analysts said. 'If you are trying to beat your benchmark and you were underweight any of the AI names you have to chase them,' B. Riley Wealth's Hogan said. After S&P 500's 2.2% gain in July, the seasonally volatile months of August and September, markets might face some short-term turbulence, Hogan said. Historically, August has marked a pick-up in stock market gyrations that peaks in October. August kicked off with stocks selling off sharply on Friday as new US tariffs on dozens of trading partners and Amazon's unimpressive earnings weighed on sentiment, while a weaker payrolls report added to risk aversion. But any near-term market pullback should be seen as a buying opportunity, especially in some of the mega-cap, technology names, Hogan said. With big AI names, Alphabet, Microsoft, Nvidia, Meta Platforms and Amazon, commanding about a quarter of the weight in the S&P 500, the health of the AI trade bodes well for the market at an index level, analysts said.
