Shein Slammed with €40 Million Fine in France for Misleading Discounts and Green Claims
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What happened?
France’s competition and anti-fraud watchdog (DGCCRF) has issued a record €40 million fine to Shein’s French entity over deceptive discounting practices and unclear environmental marketing.
Scope of the investigation
The DGCCRF reviewed thousands of product pages between October 2022 and August 2023. Findings included:
- 57 % of advertised “discounts” delivered no actual price reduction
- 19 % displayed smaller savings than claimed
- 11 % involved price increases masked as promotions
Deceptive discounting tactics
Investigators identified that Shein inflated reference prices—sometimes by raising them just before announcing a strike-through discount—leading to false impressions of genuine deals .
Greenwashing concerns
The probe also flagged misleading sustainability messaging. Shein had claimed significant greenhouse‑gas emission reductions without evidence or clear timelines, violating transparency standards.
Shein’s response
The company acknowledged the fine and stated that within two months of being informed (around March 2024), it implemented corrective actions. It emphasized its commitment to compliance and transparency.
Why it matters
- It’s one of the largest penalties ever for marketing malpractice in France
- Reinforces EU and French pressure on “ultra‑fast fashion” brands for consumer fairness and environmental responsibility
- Shein’s market share in France has surged—from 2 % to 3 % in recent years—raising stakes for domestic retail and regulatory scrutiny
Broader context
This fine follows warnings from the EU’s CPC Network and Digital Services Act about “fake deadlines,” price manipulation, misleading labels, and lack of clarity in return policies. France is also pushing legislation targeting fast fashion pollution and advertising limits.
Forward outlook
- Enforcement intensifying: Authorities will monitor Shein closely to ensure compliance; violations could trigger additional fines.
- Industry ripple effect: Other ultra‑fast fashion platforms may face scrutiny in France and across Europe.
- Policy acceleration: France has fast-tracked anti‑fast fashion measures, including environmental levies and advertising restrictions.