GERMANY – 2024/08/16: In this photo illustration, a smartphone with the website of the fashion e-commerce company Shein is seen in front of the business logo. (Photo Illustration by Timon Schneider/SOPA Images/LightRocket via Getty Images)
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Italian antitrust agencies have launched an investigation into the Dublin-based company that operates Shein’s website and app over possible misleading environmental claims on the fast retailer’s website.
Target investigation Infinite Styles Services CO. Limited and accused Shein’s website of trying “to convey an image of the production and commercial sustainability of its clothing through general, vague, confusing and/or misleading environmental claims,” ​​the antitrust agency said in a statement.
Shein said it was “ready to cooperate openly with the relevant Italian authorities, providing the necessary support and information to resolve any questions”.
The investigation is the latest in a series of investigations by regulators across Europe into potentially misleading environmental claims by companies, as new EU regulations seek to crack down on greenwashing.
Italian authorities said that some of the information provided by Shein’s website about the ‘evoluSHEIN’ collection could mislead consumers about the amount of “green” fabric used, and also did not tell them that the clothes were not recyclable.
It also said that Shein’s website appears to emphasize a commitment to decarbonisation that appears to contradict the increase in greenhouse gas emissions shown in Shein’s sustainability reports for 2022 and 2023.
Workers produce clothes at a textile factory that supplies clothes to fast fashion e-commerce company Shein in Guangzhou in southern China’s Guangdong province.
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Founded in China, Shein is known for its affordable tops and dresses. The treatment of workers and their environmental records have come under further scrutiny following reports that they could register their shares in London.
According to the European Union’s anti-greenwashing regulations that came into force this year and will apply to all member states within two years, companies are prohibited from making vague environmental claims about their products, such as labeling them “energy-saving” or “environmentally friendly” if they do not provide proof to support him.
“We will go through a period of correction of green claims, where companies will be investigated and fined, or they will go and get data so that they can confirm and communicate certain claims accurately,” said Abbie Morris, CEO of Compare Ethics, which reviews the compliance of green claims for clients like Reform and New Look.
Shein, in a statement, said it is committed to complying with laws and regulations in the markets it operates in and maintaining transparency with its customers.
Italy’s antitrust agency, which is responsible for consumer protection as well as competition issues, recently opened an investigation into the online search giant. Google and luxury brands Armani and Dior.
According to Italian law, companies that violate consumer rights rules will be fined from 5,000 to 10 million euros ($5,590-$11.2 million).
Shein has its Europe, Middle East and Africa headquarters in Dublin. The global headquarters is in Singapore.
