France fines Shein $60m over ‘deceptive' sales practices
A probe found that Shein raised certain prices before lowering them.
PARIS - France announced on July 3 a record €40 million (S$60 million) fine against e-commerce giant Shein over 'deceptive commercial practices' after a competition inquiry, saying it misled customers on price deals and on its environmental impact.
The French competition and anti-fraud office said the investigation found Shein used 'deceptive commercial practices towards consumers regarding... price reductions', with the fine handed down with the blessing of the Paris prosecutor's office.
The DGCCRF competition office said the nearly year-long probe found that the firm raised certain prices before lowering them.
It added that the China-founded retailer had accepted the fine.
'These practices of greatly discounted prices and permanent promotions give consumers the impression they're getting a great deal,' said the DGCCRF.
If found that 11 per cent of advertised discounts it checked 'were actually price increases'.
In 57 per cent of cases, Shein's advertised promotions actually offered 'no price reduction' and in 19 per cent of cases, the price drop was 'less significant than announced'.
Top stories
Swipe. Select. Stay informed.
Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow
Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing
Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022
World Liverpool's Portuguese forward Diogo Jota dies in car crash in Spain
Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub
Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July
Business 60 S'pore firms to get AI boost from Tata Consultancy as it launches a new innovation centre here
Singapore Scoot launches flights to Da Nang, Kota Bharu and Nha Trang; boosts frequency to other destinations
Launched in France in 2015, Shein has seen phenomenal growth in recent years and took its share in domestic clothing and footwear in 2024 to three per cent from two in 2021 – a significant slice in what is a notably fragmented market.
The company, which has become a figurehead for the downside of 'ultrafast fashion', is decried in some quarters for causing environmental pollution as well as indulging in unfair competition and allowing poor working conditions.
In a statement to AFP, Shein said it had put into action 'without delay' necessary corrective action inside two months on learning of the DGCCRF probe against in March 2024.
It added it took its legal and regulatory obligations in France 'very seriously' and was committed to transparency. AFP
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
an hour ago
- CNA
Asia First - Fri 1 Aug 2025
02:25:26 Min From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
Business Times
3 hours ago
- Business Times
China's InnoScience rises 31% after named as Nvidia supplier
[HONG KONG] Chinese chipmaker InnoScience Suzhou Technology Holding closed up 31 per cent in Hong Kong on Friday (Aug 1) after it was identified by Nvidia as a supplier. Nvidia named InnoScience as a supplier for its 800V HVDC architecture on an updated silicon partner list on Thursday. The latest list, compared to an archived version from Jul 22, also shows Nvidia added Analog Devices, ON Semiconductor and Renesas Electronics as silicon suppliers for the new architecture to support growing power demand from AI infrastructure. InnoScience is the only China-based company among those suppliers. The Suzhou-based company confirmed the partnership in a statement on Friday, saying it together with Nvidia can help achieve more efficient and greener computing. The company offers compound semiconductors used in power systems for a wide range of applications from autos to data centres, according to its website. The chipmaker was founded by Luo Weiwei in 2015. Luo has a doctorate degree in applied mathematics from Massey University in New Zealand. Before InnoScience, she worked for Nasa for 15 years, according to trade group SEMI China. The company was listed in Hong Kong late last year. Nvidia's partnership with the Chinese chipmaker is notable as the global chip industry is becoming more fragmented. Washington has been trying to restrict China's access to most cutting-edge AI silicons and chipmaking expertise, while Beijing has vowed to reduce reliance on foreign technologies. The US has barred Nvidia from supplying its most advanced chips, the gold standards for AI computing, to China. Trump officials pledged to lift restrictions on Nvidia's H20 chips, a product the US chipmaker customized for China to comply with US export controls, in July as part of a trade deal for Beijing to allow more sales of rare-Earth minerals needed to make a range of high-tech products. However, China's top Internet watchdog summoned Nvidia representatives earlier this week to discuss what Chinese officials deem as significant security risks in H20, signalling that Beijing may find the chip not to be a worthy offering as part of the trade agreement. Nvidia, meanwhile, said it has not installed 'backdoors' in its products. BLOOMBERG
Straits Times
4 hours ago
- Straits Times
ST explains: How Trump tariffs could affect Singapore SMEs, jobs and markets
Sign up now: Get ST's newsletters delivered to your inbox Analysts note that Singapore will feel an outsized impact if tariffs put a damper on trade. SINGAPORE – Singapore seems to have escaped a major hit from the US tariffs with a relatively low baseline levy of 10 per cent . But this is just a small part of the picture, say analysts, who note that the country will feel an outsized impact if tariffs put a damper on trade. Mr Song Seng Wun, economic adviser at CGS International Securities Singapore, told The Straits Times: 'Every big or small country that is hit by tariffs, Singapore is watching. 'Ultimately Singapore is looking at external demand and trade flows through its ports, to support economic growth and jobs creation.' Ms Lorraine Tan, Morningstar's director of Asia equity research, believes the Government is warranted in keeping its cautious outlook for economic growth at 0 per cent to two per cent. The Monetary Authority of Singapore expects the economy will be put to the test in the coming months as trading partners are hit with higher tariffs. Why are SMEs worried about tariffs? Small and medium-sized enterprises (SMEs), which make up 99 per cent of businesses here, have asked for more support to navigate the uncertainty. Top stories Swipe. Select. Stay informed. Tech Reporting suspected advanced cyber attacks will provide a defence framework: Shanmugam Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet World As China-US tariff truce talks drag on, what are prospects for a 'big deal' for Trump? Singapore Thundery showers expected on most days in first half of August Singapore SPH Media awards three journalism scholarships to budding newsroom talent Singapore Synapxe chief executive, MND deputy secretary to become new perm secs on Sept 1 Singapore 5 women face capital charges after they were allegedly found with nearly 27kg of cocaine in S'pore Business Sumo Salad had valid insurance coverage for work injury claims: MOM Firms with supply chains extending beyond Singapore could directly face higher tariffs if they sell goods to the US. They often have less room than large conglomerates to absorb these costs and less power to pass them on to customers. These businesses should assess how exposed they are to tariffs, and how they can remain competitive, said Singapore Business Federation Chief Executive Officer Kok Ping Soon. 'The varied tariff landscape across Asia underscores the urgent need for businesses to acquire fluency in customs data and trade compliance issues, such as the basis for rules of origin and customs evaluation methods,' he added. His association is also encouraging SMEs to explore new overseas markets which have free-trade agreements with Singapore. It is organising business missions to Thailand, Egypt, India, Saudi Arabia and Mexico in the coming months. Mr Kok also cited the importance of the Business Adaptation Grant , which will be launched by October, to help companies adjust to the new tariff environment. SMEs will get a higher level of support under the grant, which will be capped at $100,000 per company and require co-funding by firms. Businesses that do not deal with the US could also be affected if their suppliers or customers are hit by tariffs, said the Association of Small and Medium Enterprises president Ang Yuit. 'Some cases, they will find that demand goes away as their customers upstream are affected,' said Mr Ang. As tariff rates on a slate of countries become clearer, SMEs are just beginning to make decisions on how to restructure their supply chains, he added, noting: 'The decision-making process has many layers, from the cost of setting up a new plan in another country, to the different components that finally make up the finished good. 'While tariff (rates) seem to have landed, the decisions and plans for businesses have just started.' What does this mean for jobs? Companies ranging from delivery giant UPS to Monopoly maker Hasbro have recently announced job cuts as tariffs raise the cost of shipping goods to the US. Singapore's total employment has continued to grow and retrenchments held steady in the second quarter, preliminary Ministry of Manpower data showed earlier this week. Employers are waiting to see how much the global economy will be affected by tariffs, Mr Song said, adding: 'We know the growth momentum will slow down. We don't know by how much. 'How much depends on whether the rest of the world will be affected by all these shifts in tariff polices. This will affect confidence, affecting business actions, job creation and employment.' Will the resilience of the stock market fade? Singapore's stock market enjoyed an unexpectedly robust first-half performance, with the Straits Times Index (STI) up around 10 per cent since the start of 2025. Morningstar's Ms Tan said the main risk to the market is not the direct impact of tariffs, but the possibility of slowing global demand and the realignment of supply chains. 'Consumer confidence is likely to be lacklustre given these uncertainties, and this could weigh on Singapore's economic growth as well,' she added. Ms Tan is also watching the earnings of banks, which have a major weighting on the local benchmark. 'If credit costs or net interest margins disappoint expectations, we could see share prices fall. Given the heavy weighting of banks on the STI, the index itself may reflect relative underperformance,' she said.
