Italy’s antitrust watchdog, AGCM, has imposed a €1 million ($1.16 million) fine on Chinese-founded fast fashion giant Shein for misleading consumers with exaggerated or unclear environmental claims about its products and sustainability efforts.
The penalty was issued against Infinite Styles Services Co. Limited, the Dublin-based company managing Shein’s European website, following an investigation that began in September last year. The inquiry scrutinised various sustainability claims made on the platform, particularly those related to its ‘evoluSHEIN by design’ collection.
According to AGCM, Shein presented its environmental messaging in vague, generic, and/or overly emphatic ways sometimes, and in other cases, such messaging was omitted and misleading. It also concluded that certain statements about circular design and recyclability of products were either false or, at the very least, confusing to the average consumer.
The regulator specifically criticised Shein’s portrayal of the ‘evoluSHEIN by design’ line as being made from fully recyclable materials, a claim it said does not hold up, given the nature of the fibres used and current recycling capabilities.
AGCM added that such communications could lead consumers to believe they were purchasing more sustainable and environmentally responsible fashion than was actually the case.
In response, Shein stated: “We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.” The company also noted it had fully cooperated with the Italian regulator during the investigation and taken immediate steps to address the concerns raised.
AGCM further took issue with Shein’s environmental targets, including its pledge to reduce greenhouse gas emissions by 25% by 2030 and to reach net zero by 2050. These goals were deemed too vague, especially given the regulator’s observation that Shein’s emissions had risen in both 2023 and 2024.
The watchdog said its final decision reflected the need for an increased duty of care on Shein’s part, due to the company’s operations in a sector known for its high environmental impact and resource intensity.
The Italian sanction further highlights the intensifying focus on sustainability claims in the fashion industry, particularly among fast fashion brands operating at scale across international markets.
