Shein, the fast fashion giant, has been fined € 1 million by the Italian Competition Authority (AGCM) for presenting a distorted picture of its environmental impact.
This follows a €40 million penalty handed down by France just weeks earlier, making it the second such blow in little over a month.
At the centre of Italy’s ruling is Shein’s European arm, Infinite Styles Services Co. Limited, headquartered in Dublin. The AGCM’s investigation, which began last September, uncovered what it describes as “vague, generic, and/or overly emphatic” messaging on the company’s website regarding sustainability and corporate responsibility.
In simpler terms, Shein told consumers one thing while doing another and Italy’s regulators are calling this greenwashing.
Shein’s claims that its ‘evoluSHEIN by design’ collection features eco-conscious manufacturing and recyclable materials didn’t stand up to investigations. The fibres used in the garments, according to the AGCM, are not truly recyclable given current systems.
Their final say is, “A fact that, considering the fibres used and currently existing recycling systems, is untrue.”
It’s a damning assessment that goes beyond marketing language. The authority noted that Shein’s emissions have actually increased in both 2023 and 2024, even as it publicly committed to cutting emissions by 25% by 2030 and reaching net zero by 2050.
These promises now appear hollow, especially when paired with what AGCM called the “highly polluting methods” of ultra-fast fashion.
What elevates this case isn’t just the fine, it’s the context. Shein is not a boutique brand, but a global juggernaut with operations spanning Europe, Africa, and beyond. And in many of these regions, the pitch of “sustainable fashion” is both appealing and suspect.
In countries where access to electricity is unreliable and poverty is widespread, such marketing begins to look more like exploitation than innovation.
Shein’s model, aggressive scaling via tech-driven logistics, mirrors that of many startups expanding into underregulated markets.
But this case is a clear signal that Europe, at least, is drawing a line. Italy’s regulators went so far as to say that Shein carries an “increased duty of care” precisely because it operates in one of the most polluting industries on the planet.
And it leads to the question of how any innovation can truly be called inclusive when it’s built on extractive foundations.
For years, the fast fashion industry has hidden behind affordability, speed, and technology. But no amount of convenience can conceal what’s now being repeatedly exposed, an industry that, left unchecked, exploits both people and planet.
Italy’s ruling won’t sink Shein. But it may finally slow it down. And for the rest of the ecosystem—especially startups chasing scale—it offers a cautionary tale: growth without integrity won’t go unchallenged.
