Italy’s competition watchdog, the AGCM, has imposed a €1 million penalty on fast-fashion giant Shein, specifically on Infinite Styles Services Co. Ltd., which operates its European website for misleading environmental claims and greenwashing.

The regulators found that Shein’s marketing around sustainability was problematic: promotional materials in sections like #SHEINTHEKNOW, its evoluSHEIN by Design collection, and broader social responsibility messaging were deemed vague, overly optimistic, or factually misleading. These promoted recyclability or circularity that did not align with reality, or implied that whole product lines were sustainable, while they represent only a small fraction of Shein’s offerings in reality.

AGCM also criticized sweeping emission-reduction pledges such as cutting greenhouse gas emissions by 25% by 2030 and achieving net‑zero by 2050. The agency noted that these claims were contradictory given documented increases in Shein’s emissions during 2023 and 2024.

This enforcement action follows a series of recent regulatory moves targeting Shein across Europe. In July, French authorities issued a €40 million fine against the company for deceptive discounting and sustainability claims, and the European Commission has launched parallel investigations under broader consumer protection and Digital Services Act mandates.

In response, Shein asserted it fully cooperated with AGCM, promptly addressed concerns, and tightened internal review procedures. The company also updated its website to clarify and substantiate its environmental claims.

This case highlights the intensifying scrutiny fast-fashion brands face over greenwashing and the importance of clear, verifiable sustainability communication. With regulators across Europe drawing firmer lines on consumer transparency, brands can no longer rely on vague “eco-friendly” language. Instead, they must back messaging with measurable, credible actions.

For sustainability-focused audiences, this episode reinforces the need for consumer vigilance and calls on companies to align marketing with reality, especially in a sector infamous for overpromising environmental credentials.

Source:

https://www.esgtoday.com/shein-fined-e1-million-for-greenwashing-in-italy/