Italy’s antitrust agency has initiated an investigation into Infinite Styles Services, a Dublin-based company that manages Shein’s website and app, over alleged misleading environmental claims on the fast-fashion retailer’s platform.
The probe accuses Shein of projecting a false image of sustainable production and commerce by using vague, generic, and potentially deceptive environmental claims, according to a statement from the antitrust authority.
Shein responded by expressing its willingness to “cooperate openly with relevant Italian authorities” and provide the necessary information to address any inquiries.
This investigation is part of a broader wave of regulatory scrutiny across Europe aimed at curbing misleading environmental claims, also known as greenwashing, as the European Union introduces new regulations. These rules, set to apply across all member states within two years, prohibit companies from making unsubstantiated environmental claims, such as labeling products “energy efficient” or “environmentally friendly” without evidence.
The Italian authority highlighted concerns that Shein’s website may mislead consumers regarding the use of “green” fabrics in its “evoluSHEIN” collection and omit the fact that the garments are not recyclable. Additionally, the website’s commitment to decarbonisation appears contradicted by increasing greenhouse gas emissions in Shein’s sustainability reports from 2022 and 2023.
Shein, a Chinese-founded brand known for its low-cost fashion, has faced mounting scrutiny over its labor practices and environmental impact, especially amid reports of a potential stock listing in London.
“We’re going through a green claims correction period, where companies are either going to be investigated and fined, or they go away and get the data to really substantiate and accurately communicate specific claims,” said Abbie Morris, CEO of Compare Ethics, which checks green claims compliance for clients like Reformation and New Look.
Italy’s antitrust agency, responsible for both consumer protection and competition issues, recently opened investigations into Google, Armani, and Dior. Under Italian law, companies found violating consumer rights may face fines between 5,000 and 10 million euros (US$5,590 to US$11.2 million).