Peters & Peters

ESG Enforcement Tracker

Charting the rise of criminal and regulatory enforcement

Italian Competition Authority imposes €1 million fine on Shein

Date:
25 September 2024
Relevant legislation/regulation:
Legislative Decree No. 206 of 6 September 2005 and subsequent amendments
Jurisdiction:
Italy
Status:
Ongoing
Regulator/enforcement authority:
Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, (AGCM))
ESG Category:
Environmental
Defendant(s)/subjects(s):
Infinite Style Services Co. Ltd / Shein

Key Facts:

In September 2024, the ICA opened an investigation into Infinite Styles for possible generic, vague, confusing and/or misleading environmental claims made in relation to the website shein.com.

Infinite Styles is a company registered in Dublin which provides “marketplace services” in relation to the website operated in the EU on behalf of Shein, an e-commerce only fashion retailer, and the largest fashion retailer in the world in 2022, headquartered in Singapore. The EU activities of Shein are operated by companies registered in Dublin.

The ICA, in its press release, emphasises that its concern is driven by the environmental impact of “fast or super fast fashion”, which may have led to the company to adopt communication strategies which are misleading or omit key information. Its concerns include:

  • Claims on the ‘circularity’, quality and responsible consumption of the garments/textiles.
  • Potential misleading claims on ‘green’ fibres.
  • Lack of information on additional recyclability of garments.
  • Statements on decarbonisation which are inconsistent with sustainability reports

On 29 July 2025, the ICA found that Infinite Styles’ communication strategies amounted to unfair business practices. The ICA ordered corrective action (including restrictions on dissemination of the challenged communication strategies and an obligation to notify of initiative taken to achieve compliance) and imposed a fine of €1 million on Shein.

Sources: 

ICA press release

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