On August 4, 2025, the Italian Competition Authority (AGCM) officially announced a €1 million fine against Infinite Styles Services Co. Limited, the company responsible for managing Shein's European product trading website, for "misleading, ambiguous, and omission of key information" in its environmental claims.

The penalty came nearly a year after the agency launched an investigation (case number PS12709) in September 2024.

It is worth noting that Shein is facing increasing scrutiny in Europe. Italy is the second European country to take action against Shein, following France, which fined the company €40 million in July for false discounts and misleading environmental claims. Furthermore, the European Commission also investigated Shein in May for alleged violations of consumer protection law involving false discounts and misleading environmental claims.

Why was SHEIN accused of "greenwashing"?

The AGCM investigation revealed that Shein engaged in allegedly misleading environmental claims in various categories.

The company disseminated environmental claims through its website https://it.shein.com and other promotional and/or informational online pages, including within the #SHEINTHEKNOW, evoluSHEIN, and social responsibility categories. These claims were sometimes vague, general, and/or overemphasized, and sometimes even misleading or omit information.

1. Misleading Claims on the #SHEINTHEKNOW Page

Claims:

- Implementation of "Circular System Design";

- Commitment to reducing waste and reusing resources;

- Products are of high quality.

Issues:

- Vague claims with a lack of specific supporting data;

- Lack of a full lifecycle perspective on circularity and environmental protection;

- Vague insinuations of a "positive impact" on the environment.

Specific examples of misleading information:

- Claims of using "zero-water printing technology" when in reality, water savings are only relative;

- Using "bottled water savings" to exaggerate benefits (e.g., 590,000 tons of water is equated to 1.18 billion bottles of water).

2. Greenwashing in the promotion of the evoluSHEIN by Design project

evoluSHEIN claims:

- Using recycled, reused, and forest-friendly fibers;

- Promoting "responsibly sourced" green fashion.

The actual problem:

- This collection accounts for a very small portion of Shein's total product line (2.2% in 2023, increasing to 8.3% in 2024);

- Most products are not 100% made of sustainable materials; only 30% is required to be labeled "eco-friendly";

- Consumers must hover their mouse to view relevant information, lacking visual transparency;

- Material recyclability and reusability are not disclosed; for example, garments containing elastane are virtually non-recyclable.

3. Claims of achieving greenhouse gas reduction targets but no real progress

Shein claims:

- A 25% reduction by 2030;

- Net zero emissions by 2050.

The actual problem:

- Over 99% of carbon emissions come from Scope 3 areas such as supply chain and transportation;

- 2021: 6.04 million tons of CO₂; 9.17 million tons in 2022 (a 52% year-on-year increase); and 16.68 million tons in 2023 (an 82% year-on-year increase);

- Before May 2025, the company falsely claimed its targets were "compliant with the SBTi standard," but it was not actually certified until May 23, 2025.

Shein is categorized as an "ultra-fast fashion" model, characterized by:

- Thousands of new products added daily;

- Extremely short production cycles;

- Extremely short product lifecycles;

- Mainly using non-recyclable synthetic fibers;

- A large volume of goods air-freighted from China to Italy;

- Extremely high energy consumption for packaging and transportation.

The AGCM pointed out that Shein's business model inherently encourages overconsumption, contradicting its environmental claims. During the investigation, Shein modified or removed some content on its pages, but most issues persisted. The AGCM also emphasized that as an ultra-fast fashion company, Shein should assume a higher duty of care due to the industry's inherently "highly polluting" characteristics (reliance on synthetic fibers and high waste rates).

What is fast fashion? Fast fashion offers currently popular styles and elements, characterized by low prices, a wide variety of styles, and small quantities, to stimulate consumer interest and maximize consumer satisfaction.

The fast fashion model is so called because it involves the rapid design, production, distribution, and marketing of clothing. This means retailers can offer a wider variety of products in large quantities, allowing consumers to obtain more fashionable and differentiated products at low prices.

Fast fashion has a significant impact on the environment. According to the United Nations Environment Programme, the fast fashion industry is the second largest water consumer and accounts for approximately 10% of global carbon emissions, exceeding the emissions from all international flights and maritime shipping combined.

Fast fashion not only has a significant impact on the environment, but it also creates social problems, particularly in developing economies. Forced labor and child labor exist in the fashion industry.

The rapid consumption of clothing and the demand for short fashion cycles put pressure on production resources, often leading supply chains to prioritize profits over human well-being. However, this industry's problems are often overlooked by consumers.

So, is slow fashion the solution? Slow fashion is a fashion philosophy that emphasizes responsible consumption and sustainable development, advocating for less blind trend-following through timeless design, quality craftsmanship, and environmentally friendly production.

The World Resources Institute (WRI) recommends that companies design, test, and invest in business models that reuse clothing and maximize its lifespan. The United Nations has established the UN Alliance for Sustainable Fashion, through which the UN is committed to changing the path of fashion, reducing its negative impacts on the environment and society, and transforming fashion into a driving force for achieving the Sustainable Development Goals.

The penalty imposed on Shein by the Italian AGCM reflects both its shortcomings in transparency and accuracy of information and the regulator's strong commitment to environmental protection and consumer rights.

Shein stated that it fully cooperated with the AGCM throughout the investigation and has taken immediate corrective measures. The company has pledged to strengthen its internal review processes and update its website to ensure that all environmental claims are clear, verifiable, and compliant with regulatory requirements. Its continued implementation will warrant continued attention.

Author：Qinger