On August 4, Chinese ultra-fast fashion giant Shein was fined €1 million by Italian authorities over misleading environmental claims, commonly referred to as greenwashing.
The penalty was imposed by the Italian Competition Authority (AGCM). The target of the sanction is Infinite Styles Services Co. Ltd., a Dublin-based company that manages Shein’s European website.
According to AGCM, the company published environmental claims across various online pages such as #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility. Some of these statements were described as “vague, generic, or overly emphatic,” while others were “misleading or omissive,” lacking critical context or specificity.
One of the key issues cited was the description of product recyclability and Shein’s so-called “circular system” aimed at waste reduction. AGCM concluded that such statements were “either false or at least confusing.”
The authority also questioned Shein’s climate pledges, particularly its stated goal to reduce greenhouse gas emissions by 25% by 2030 and achieve carbon neutrality by 2050. AGCM said these claims were “vague and generic” and “contradicted by an actual increase in Shein’s emissions in 2023 and 2024.”
In response to the ruling, Shein told AFP, “We cooperated fully with the investigation and took immediate action following the regulator’s concerns,” adding, “All environmental claims are now clear, specific, and compliant with relevant regulations.”
Italy is not the first country to impose penalties on Shein for greenwashing. In July 2025, France’s DGCCRF (Directorate General for Competition, Consumer Affairs and Fraud Control) levied a €40 million fine against the company following an investigation into fake discounts and misleading sustainability claims.
French authorities concluded that Shein had engaged in “misleading commercial practices towards consumers,” especially with regard to discount pricing and the credibility of its environmental commitments. Shein accepted the penalty and stated that it had already taken corrective measures.
This series of sanctions highlights the increasing scrutiny fast fashion companies are facing across Europe. The European Commission is also currently investigating Shein for potential violations of the Digital Services Act (DSA) and consumer protection laws.
Despite its rapid global expansion, Shein has long faced criticism over its environmental impact and labor practices. Concerns have been raised, particularly regarding allegations of sourcing cotton from China’s Xinjiang region, where the U.S. government and various NGOs have accused the Chinese authorities of human rights violations and forced labor. In response, Shein has stated that it does not use cotton from China in products intended for the U.S. market, and that it has implemented a global Supplier Code of Conduct that prohibits forced labor.
Shein also filed for an IPO in the United States at the end of 2023, but the application was reportedly withdrawn after failing to obtain approval from the China Securities Regulatory Commission (CSRC). A subsequent attempt to list in London was also blocked by the CSRC. Currently, Shein is said to be preparing for a confidential filing for an IPO in Hong Kong, with a draft prospectus reportedly in development.
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