GERMANY – 2024/08/16: In this photo illustration, a smartphone with the website of fashion e-commerce company Shein can be seen in front of a business logo. (Photo illustration by Timon Schneider/SOPA Images/LightRocket via Getty Images)
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Italy's antitrust agency has launched an investigation into Dublin-based Shein, the operator of the Shein website and app, over potentially misleading environmental claims on the fast fashion retailer's website.
In a statement, the antitrust agency said the investigation was targeting Infinite Styles Services CO. Limited and accused Shein's website of trying to “convey its apparel production and operations through generic, vague, confusing and/or misleading environmental claims.” The image of business sustainability”.
Shein said it was “ready to cooperate openly with the relevant Italian authorities and provide the necessary support and information to resolve any inquiries”.
The investigation is the latest in a series of investigations by European regulators into potentially misleading environmental claims by companies, amid new EU rules aimed at combating green laundering.
Italian authorities said some of the information provided by the website about the Shein 'evoluSHEIN' range could mislead consumers about the amount of “green” fabric used, while also failing to inform them that the garments were not recyclable.
It also said Shein's website appeared to emphasize a commitment to decarbonization, which appeared to contradict rising greenhouse gas emissions shown in Shein's 2022 and 2023 sustainability reports.
Workers produce clothing at a textile factory in Guangzhou, southern China's Guangdong province, that supplies clothing to fast fashion e-commerce company Shein.
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Founded in China, Shein is known for its affordable tops and dresses. it is Worker Treatment and Environmental Records The company has come under heightened scrutiny after reports it could list in London.
Under EU anti-green laundering regulations that come into effect this year and will apply to all member states in two years, companies are not allowed to make vague environmental claims about their products, such as labeling them as “energy saving” or “environmentally friendly.” The evidence supports them.
Abbie Morris, chief executive of Compare Ethics, said: “We are going through a green claims correction period, where companies are either being investigated and fined, or they are going away and getting data to actually substantiate and accurately communicate specific claims.
Shein said in a statement that the company is committed to complying with the laws and regulations of the markets in which it operates and maintaining transparency with its customers.
Italy's antitrust agency, responsible for consumer protection and competition issues, recently launched an investigation into the online search giant Google and luxury brands Armani and Dior.
Under Italian legislation, companies found to have violated consumer rights rules face fines ranging from 5,000 euros to 10 million euros ($55.90 to $11.2 million).
Shein's EMEA headquarters are in Dublin. Its global headquarters is in Singapore.