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.

The Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) announced the sanction after uncovering discount manipulation and misleading environmental ads on Shein’s French website.

The penalty follows a nearly year-long investigation into Infinite Style E-Commerce Co Ltd (ISEL), the company responsible for Shein’s sales in France. 

Inspectors analysed thousands of product listings from October 2022 to August 2023 and found that over half of the advertised “discounts” were not real. 

According to the agency, 57% of the deals offered no actual price reduction, 19% were exaggerated, and 11% were, in reality, price hikes disguised as markdowns.

France’s pricing law says any discount must reference the lowest price offered over the previous 30 days. But Shein routinely violated that rule. 

In some cases, the company hiked up prices just before applying the so-called discounts. DGCCRF said consumers were “deceived about the authenticity of discounts they could benefit from.”

Beyond pricing tricks, the probe also flagged Shein for vague and potentially misleading environmental claims, part of a growing European crackdown on “greenwashing” in fashion. 

The investigation concluded that Shein’s marketing failed to offer credible evidence for its sustainability claims, leading to worries about transparency in a sector already under scrutiny for its environmental footprint.

In a formal response, Shein said: “The antitrust agency had informed Infinite Style Ecommerce Co Ltd (ISEL) of breaches related to reference price and environmental regulations in March last year, and ISEL had taken corrective action within the following two months. This means that all identified issues were addressed more than a year ago.”

Despite Shein’s insistence that it resolved the problems swiftly, the French authorities didn’t back down. Officials say the fine was not just about past offences, but about sending a signal to the entire digital retail sector. 

France recently passed new legislation targeting ultra-fast fashion platforms such as Shein and Temu, aiming to curb both consumer deception and environmental harm.

The penalty is another blow to Shein, which is already facing global pressure over its business practices, from opaque supply chains to allegations of labour abuse. 

In early 2024, a coalition of 25 European consumer protection groups filed a complaint against the company with the European Commission, potentially paving the way for even stricter oversight across the EU.

This fine arrives at a sensitive moment for Shein, which is reportedly preparing for a stock market listing and expanding its physical retail footprint across Europe. 

While the company insists it’s playing by the rules, regulators are not convinced. France’s DGCCRF has confirmed that it will continue monitoring Shein’s operations closely to ensure long-term compliance.