Shein Fined €40 Million for Misleading Environmental Claims: Here’s Why

Shein has been slapped with a 40 million euro fine for fraudulent practices by the French Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF). This is another setback in France for the Chinese ultra fast-fashion giant, which is under scrutiny by authorities amidst financial difficulties faced by traditional ready-to-wear brands.

A late 2022 investigation “revealed the implementation by Infinite Style E-commerce LTD (ISEL), responsible for sales of Shein products, of deceptive commercial practices regarding the reality of price reductions granted and the scope of commitments concerning environmental claims,” detailed the DGCCRF in a statement on July 3, 2025.

In practice, the site is accused of not respecting the regulation according to which the reference price for a reduction is the lowest price practiced during the 30 days preceding the start of the promotion. According to the fraud control agency, Shein often did not even apply a real promotion: “57% of the ads checked (…) offered no price reduction, 19% a smaller reduction than announced, and 11% were actually price increases.” The site is known for displaying “flash promotions” that are very limited in time, which push the consumer to buy under the impression of getting a deal, when the reality is quite different.

Another point on which Shein was criticized, the “environmental claims” made on its site, “notably the message by which it presented itself as a responsible company, which would limit its environmental impact by reducing its greenhouse gas emissions by 25%”. These claims that the platform “was not able to justify,” while its business model relies on the mass and extremely polluting production of low-cost textiles. As reminded by the Multinational Observatory in June 2025, Shein’s emissions “doubled in 2023 compared to the previous year, and tripled compared to 2021.” Among these, 38% would come from the transport of goods, the vast majority of the rest being linked to production.

If the Chinese clothing manufacturer has “accepted” the fine, it nevertheless issued a response sent to journalists from Le Monde on Thursday, July 3, stating that corrective measures had been implemented within two months after “the notification of these elements” (environmental, ed) by the DGCCRF in March 2024.” Shein also noted being the “first company, and to date the only one, to have been penalized for not having affixed the mention ‘releases microplastic fibers during washing’.”.

This will likely not be the last sanction against the ultra fast-fashion giant, which could be subject to the law aiming to reduce the environmental footprint of textiles and banning fast-fashion players from advertising on social media, adopted at the beginning of June. Shein is also targeted by an investigation by the National Commission on Informatics and Liberty for violation of internet users’ privacy, and faces complaints from consumer associations. More recently, on Thursday, July 3, the Minister Delegate for Commerce and SMEs, Véronique Louwagie, announced launching a discussion with the European Commission to dereference ultra fast-fashion platforms. And this, “even if they cooperate with the State.”

A decision that comes two weeks after two iconic French ready-to-wear brands, Comptoir des Cotonniers and Princesse Tam Tam, filed for bankruptcy protection. Concurrently, Shein, Temu, and Amazon represent 7% of the French market, where clothing sales grew by 3% in 2024, driven 30% by these actors. But will limiting the presence of these foreign giants be enough to save the mid-range French fashion sector?