China-based fast-fashion mammoth Shein is under fire by the Italian regulator AGCM. Almost synonymous with the name “fast fashion”, the online-founded retail platform was fined €1 million for misleading products on environmental grounds.
This misconception, often created intentionally, is called greenwashing. However, this is not the first time Shein has faced trouble from a European rival and consumer protection body. Just last month, in July, a French-based company fined Shein for €40 million for misleading discounts and claims.
What is greenwashing?
Ever read a label on your clothes that says “made with recycled materials”? Greenwashing refers to the deceptive practices used by brands to convey that their products are environmentally safe. It is a misleading marketing tactic to catch a customer’s eye on the grounds of sustainability. This involves false labels, vague product descriptions, and even confusing advertising.
Greenwashing also comes with hidden trade-offs when a brand claims to be “green”. They may be downplaying the narrative of labour-abusive work environments and conditions. Many fast-fashion brands are often accused of this tactic, which also includes other moguls like Zara.
AGCM investigation slams Shein
The fine was imposed on Infinite Styles Services Co. Limited which is a Dublin-based company operating Shein’s website in Europe. As a result of the AGCM investigation launched last September, the website was found to be greenwashing its products.
As per AGCM, the environmental sustainability claims and messages of social responsibility on Shein’s website “were sometimes vague, generic, and/or overly emphatic, and in other cases omitted and misleading,” reported Reuters.
When it came to circular system design and product recyclability, AMGC falsified their claims and called them “confusing”. The Italian regulator also noted that the greenwashing of the ‘EvoluSHEIN by design’ collection was overstated.
Questions were also raised on the “vague and generic” commitments to cut greenhouse emissions by 25% by 2030. AGCM reported that Shein’s emissions, rather, increased in 2023 and 2024.
What did ‘EvoluSHEIN by design’ say?
This collection from the China-based brand markets its clothes as sustainable and claims responsible manufacturing. AGCM reiterated that this could potentially mislead customers into thinking a product is “full recyclable”.
In a statement given by Shein, it mentioned that it had given its full cooperation to AGCM and had taken immediate action to address these concerns. It read, “We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”