Italy fines Chinese retailer Shein $1M for 'deceptive' practices
The The Italian Competition Authority issued the fine of more than $1.1 million, to Infinite Styles Services Co. Limited, which is Shein's Dublin-based European manager.
Italian officials accused the company of "misleading and/or deceptive environmental messages and claims."
Shein claimed a goal to reduce greenhouse gas emissions by some 25% by 2030, with a 2050 goal to reach net zero. The AGCM saidShein's proposal was "vague" and "generic." It further stated it was "even contradicted by an actual increase in Shein's greenhouse gas emissions in 2023 and 2024."
The fashion online retailer sees an average of over 45 million monthly users just in Europe, according to EU officials.
Last year in April, the Chinese-owned fashion app was forced to follow new but stricter rules under the European Commission's Digital Services Act after officials determined Shein was large enough to fall under the legislation.
Italy is now the second European country in a little over a month to fine the company after France in July issued a $46 million penalty after its 11-month investigation.
"Through its website https://it.shein.com and other promotional and/or informational online pages," Italy's AGCM said Monday, "the company disseminated environmental claims within the sections #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility that were, in some instances, vague, generic."
It added it was "and/or overly emphatic, and in others, misleading or omissive."
The China-based company similar to Temu does not publicly disclose its earnings.
However, a source told Bloomberg that in its first quarter that Shein's net income went up to over $400 million while revenue was at around $10 billion.
It's said the higher profit margin was related to customers using to get ahead of new U.S. tariffs imposed by President Donald Trump.
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