Italy’s antitrust agency has initiated an investigation into a Dublin-based firm that runs Shein’s website and mobile application, focusing on potentially misleading environmental claims made by this fast-fashion retailer. The inquiry is significant as it raises concerns about consumer protection and the authenticity of sustainability claims in the fashion industry.
The focus of the investigation is directed at Infinite Styles Services CO. Limited. The Italian antitrust authority has accused the company of using its website to convey an impression of sustainability in production and sales of its garments through vague, generic, and potentially confusing environmental messages, which may mislead consumers regarding the true nature of the products.
In response to the investigation, Shein expressed its willingness to cooperate fully with the appropriate Italian authorities, emphasizing its commitment to providing the needed support and information to assist in resolving any queries that might arise during the inquiry.
The authority highlighted that some information linked to the ‘evoluSHEIN’ clothing collection, which is marketed as sustainable, might create a false impression regarding the proportion of eco-friendly materials used. Furthermore, it has been noted that the garments associated with this collection do not possess the capability to be recycled further, which is crucial information for consumers.
Additionally, the Italian authority pointed out that Shein’s website appears to stress a dedication to decarbonization. However, this commitment seems to be undermined by the increases in greenhouse gas emissions reported in Shein’s sustainability documents for the years 2022 and 2023.
Founded in China, Shein is widely recognized for its affordable clothing, particularly tops and dresses. Nevertheless, the company has been facing mounting scrutiny concerning its labor practices and environmental impact, especially in light of recent reports suggesting that it might be planning to list its shares in London.
With the emergence of new European Union anti-greenwashing regulations that took effect this year and will universally apply to all member states within a two-year timeframe, companies are now prohibited from making ambiguous environmental assertions regarding their products. For instance, claiming products as “energy efficient” or “environmentally friendly” without verifiable evidence is no longer acceptable.
Italy’s antitrust authority holds responsibility not only for matters of competition but also for consumer protection. They have recently launched investigations into significant entities, including the online search behemoth Google and luxury brands such as Armani and Dior, reflecting a broader commitment to ensuring fairness in the marketplace.
Under Italian law, companies that are found to have violated consumer rights regulations could face considerable penalties, with fines potentially ranging from 5,000 euros to a staggering 10 million euros ($5,590 – $11.2 million), underscoring the seriousness of compliance in operational practices.
Shein maintains its headquarters for Europe, the Middle East, and Africa in Dublin, while its global headquarters are positioned in Singapore, illustrating its expansive reach in the international market.
By Helen Reid and Elisa Anzolin; Editing by Keith Weir and Mark Potter
