Fast-fashion retailer Shein has been hit with a €40 million fine by French authorities over what they described as “deceptive commercial practices,” including misleading claims about promotional prices and the brand’s environmental credentials.

France’s competition watchdog, the DGCCRF, announced the record fine on Thursday following a nearly year-long investigation. The inquiry, conducted with the backing of the Paris prosecutor’s office, revealed that Shein had presented price reductions which were either inflated or entirely fabricated.

“These practices of greatly discounted prices and permanent promotions give consumers the impression they’re getting a great deal,” the DGCCRF said. The probe found that in 11 percent of the cases checked, advertised discounts were in fact based on price increases. In more than half (57 percent) there was no actual price cut at all, and in 19 percent of cases, the reduction was smaller than advertised.

Shein, which launched in France in 2015, accepted the fine. The company has seen rapid growth in the French market, increasing its share of domestic clothing and footwear sales from two percent in 2021 to three percent in 2023, a notable figure in an industry marked by intense competition.

The DGCCRF also flagged concerns about Shein’s environmental claims, which it said contributed to an “ultrafast fashion” model criticised for contributing to pollution, unfair competition, and poor labour conditions.

In a statement to AFP, Shein said it had acted “without delay” to correct the issues identified, after being notified of the probe in March last year. The company added it takes its legal and regulatory responsibilities in France “very seriously” and is “committed to transparency.”