Antitrust, fine Shein EUR 1 million
4' min read
4' min read
The issues are not new: the lack of transparency on the environmental and social impact of one's production (an issue that has also struck the luxury world recently: from Dior to Loro Piana); the effects that cheap fashion, by tempting consumers with its bargain prices, has on the planet, given that fashion is already the world's second largest industry in terms of environmental impact.
Underlining the centrality of two still unresolved issues comes a new measure by the Competition and Market Authority, the second in a few days (after the one against Armani) that sanctions a practice considered unfair perpetrated by a fashion company. This time the sanction, amounting to 1 million euros, is aimed at Infinite Styles Services Co. Ltd, a company that in Europe manages the buying and selling sites for Shein products, a Singapore-based company known worldwide for offering garments for sale online at very low prices.
The objections
.According to the Authority, the ultra fast fashion giant used misleading/omissive environmental messages and claims (green claims) in the promotion and sale of Shein-branded clothing products. These include environmental claims in the sections #SHEINTHEKNOW, 'evoluSHEIN' and 'Social Responsibility', in some cases vague, generic and/or over-emphatic, in other cases omissive and misleading.
"The environmental claims in the #SHEINTHEKNOW section," reads the Agcm note, "relating to the 'design of a circular system' or on the recyclability of the products, were false or at least confusing. The claims used by Shein to present, describe and promote the garments of the "evoluSHEIN by Design" line emphasise the use of "green" fibres without clearly indicating what the substantial environmental benefits of the products are during their entire life cycle and without specifying that this line of products is still marginal compared to the total of Shein branded products". I
In a nutshell, consumers could be misled - according to the Antitrust Authority - into believing not only that the 'evoluSHEIN by Design' collection is made solely of 'environmentally sustainable' materials, but also that the products in this collection are fully recyclable, and these claims, considering the fibres used and the recycling systems currently in place, are untrue.
