Italian authorities have slapped Shein with a $1.16 million fine after determining the retailer presented its products as more eco-friendly than they are — a practice known as greenwashing.
What's happening?
Reuters reported that Italy's competition authority (AGCM) issued the $1.16 million fine (€1 million) to Infinite Styles Services Co. Limited, which operates Shein's website in Europe.
AGCM referred to Shein's environmental, sustainability, and social responsibility statements as "sometimes vague, generic, and/or overly emphatic, and in other cases omitted and misleading."
In particular, it noted Shein's claims of using a circular system for its "evoluSHEIN by design" collection were "found to be false or at the very least confusing," potentially misleading consumers into believing they were purchasing goods from 100% recyclable materials — "a fact that, considering the fibres used and currently existing recycling systems, is untrue," AGCM concluded.
The authority imposed the fine after a nearly yearlong investigation.
Why is this important?
Nearly 85% of consumers polled across 31 countries and territories as part of PwC's 2024 Voice of the Consumer Survey reported that they were experiencing disruption in their daily lives due to rising global temperatures and were prioritizing brands focused on sustainability.
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When companies engage in greenwashing, it makes it challenging for consumers to know who to trust, and it can set back their efforts to hold brands accountable with their purchasing power.
As it stands, the fashion industry is one of the most polluting sectors around, clocking in as the second-largest polluter of water due to its reliance on toxic chemical dyes and synthetic materials (i.e., dirty fuel-derived plastics), according to Business Insider and Earth.org.
Fast-fashion retailers such as Shein are particularly troublesome because they rely on business models that encourage consumers to buy trendy clothing that's not made to last.
As a result, these garments are likely to end up in landfills sooner rather than later, contributing to a growing crisis of microplastic contamination and environmental degradation.
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What's being done about this?
After AGCM fined Shein's Dublin-based website operator, Shein told Reuters that it has now "strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations."
Responsible for consumer protection and competition, AGCM will surely be keeping an eye on Shein moving forward.
In addition to being repeatedly called out for instances of greenwashing, Shein allegedly failed to root out exploitative labor practices in its supply chain after promising improvements, according to a 2024 investigation by Swiss human rights advocacy group Public Eye.
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