Latest news with #deceptivepractices
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
France Fines Shein 40 Million Euros for Misleading Discounts
France's antitrust agency said on Thursday it had fined China-founded fast-fashion retailer Shein 40 million euros ($47.17 million) for alleged deceptive business practices including misleading discounts, following a nearly year-long probe. The agency, in charge of consumer protection as well as competition, said Infinite Style E-Commerce Co Ltd, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine, Reuters reported. Under French regulations, the reference price for any discount is the lowest one given by a retailer during the 30 days preceding the offer. Shein infringed that rule by not taking into account previous offers, and sometimes increasing the price before applying a discount, the agency said. It said its investigation showed the company "deceived consumers about the authenticity of discounts they could benefit from." The probe, conducted across thousands of products on Shein's French site between October 1, 2022 and August 31, 2023, found 57% of advertised deals were not, in fact, offering a lower price; 19% had less of a discount than advertised; and 11% were in fact price increases. In a statement, Shein said the antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. "This means that all identified issues were addressed more than a year ago," Shein said, adding that ISEL was committed to complying with French regulations.
CTV News
3 days ago
- Business
- CTV News
France fines Shein 40 million euros over ‘deceptive' sales practices
A page from the Shein website is shown in this photo, in New York on June 23, 2023. (AP Photo/Richard Drew) Paris, France -- France announced Thursday a record 40 million-euro 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 percent of advertised discounts it checked 'were actually price increases'. In 57 percent of cases Shein's advertised promotions actually offered 'no price reduction' and in 19 percent of cases the price drop 'less significant than announced'. Launched in France in 2015, Shein has seen phenomenal growth in recent years and took its share in the domestic clothing and footwear last year to three percent 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 of last year. It added it took its legal and regulatory obligations in France 'very seriously' and was committed to transparency. AFP
Reuters
3 days ago
- Business
- Reuters
France fines Shein 40 million euros for deceptive business practices
PARIS, July 3 (Reuters) - France's antitrust agency said on Thursday it had fined fast-fashion retailer Shein 40 million euros ($47.17 million) for alleged deceptive business practices including misleading discounts and vague claims about environmental impact, following a nearly year-long probe. The agency said Infinite Style E-Commerce Co Ltd, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. In a statement, China-founded Shein said the antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of issues related to discounts and environmental claims in March last year, and had taken corrective action within the following two months. "All of the points raised have therefore been resolved more than a year ago," Shein said in a statement. "ISEL takes very seriously its legal and regulatory obligations in France." ($1 = 0.8480 euros)
Al Arabiya
3 days ago
- Business
- Al Arabiya
France fines Shein $47 million for deceptive business practices
France's antitrust agency said on Thursday it had fined Shein 40 million euros ($47.17 million) for alleged deceptive business practices, following a nearly yearlong probe. The agency said Infinite Style E-Commerce LTD, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. In a statement, China-founded Shein said the antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of issues related to discounts and environmental claims in March last year, and had taken corrective action within the following two months. 'All of the points raised have therefore been resolved more than a year ago,' Shein said in a statement. 'ISEL takes very seriously its legal and regulatory obligations in France.'
Yahoo
3 days ago
- Business
- Yahoo
France fines Shein 40 million euros for deceptive business practices
PARIS (Reuters) -France's antitrust agency said on Thursday it had fined Shein 40 million euros ($47.17 million) for alleged deceptive business practices, following a nearly yearlong probe. The agency said Infinite Style E-Commerce LTD, which handles sales for the Shein brand, had misled customers about discounts, and that the company had accepted the fine. Representatives for Shein did not immediately respond to requests for comment. ($1 = 0.8480 euros)
