Chinese fast fashion giant Shein has been fined €1 million (£870,000) by Italian authorities for making misleading environmental claims on its website — marking the second major regulatory penalty in Europe for the retailer in as many months.
Italy’s competition and market authority (AGCM) said Shein had presented sustainability and social responsibility messaging on its site that was “vague, generic and overly emphatic”, and in some cases misleading or omissive. The authority criticised the company’s communication strategy around the environmental characteristics of its products and collections.
The fine was issued to Infinite Styles Services Co Ltd, the Dublin-based entity operating Shein’s website across Europe.
It follows a €40 million penalty in France just weeks earlier, where regulators found Shein guilty of deceptive commercial practices, including misleading discount promotions and unsupported environmental claims.
The AGCM ruling focused on Shein’s promotional content within its #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility sections. According to the authority, these pages presented claims that could mislead consumers about the brand’s environmental impact, particularly around product circularity, recyclability and the use of sustainable materials.
In particular, Shein’s “evoluSHEIN by Design” collection was flagged for overstating its environmental credentials.
“These claims may lead consumers to believe that the collection is made solely from sustainable materials and that its products are fully recyclable — statements which, given the fibres used and current recycling systems, do not reflect reality,” AGCM said in its ruling.
It added that the retailer, which has built its business model around ultra-cheap, high-volume production, had used environmental language to imply levels of sustainability that were not substantiated.
The AGCM also criticised Shein’s use of terms such as “waste-less innovation” and “collective resilience”, arguing these created a misleading image of the brand’s environmental performance.
In a statement, Shein said it had fully cooperated with the AGCM during its investigation and had already taken action to address the concerns raised.
“We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, specific, and compliant with regulation,” the company said.
Shein added that it remains committed to improving transparency and aligning its marketing practices with evolving EU consumer protection standards.
The Italian ruling adds to a growing list of regulatory actions against Shein across Europe. In July, France’s Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF) imposed a €40 million fine for “deceptive commercial practices”. French investigators found the company had misled consumers with inflated discounts and insufficient evidence to support environmental claims.
Shein is also facing mounting pressure from European policymakers. Last month, EU Justice Commissioner Michael McGrath expressed concern over the toxicity and safety risks posed by some products sold by Shein and its Chinese rival Temu, amid calls for stricter enforcement of environmental and safety standards.
Consumer groups across Europe have criticised fast fashion brands for using “greenwashing” tactics, where sustainability messaging is used more as a marketing tool than as a reflection of genuine environmental practices.
Environmental campaigners argue that brands like Shein, which churn out thousands of new low-cost garments each week, contribute significantly to plastic pollution and textile waste globally — especially given their heavy reliance on synthetic fibres such as polyester.
With the EU’s Green Claims Directive and Digital Services Act placing greater scrutiny on online marketing and corporate sustainability claims, more brands could face legal consequences for failing to back up environmental messaging with transparent, verifiable evidence.
The Shein case is a warning sign for all businesses operating in the e-commerce and fashion sectors, where consumer awareness and regulatory oversight around sustainability are both growing rapidly.
As governments across Europe tighten greenwashing rules and push for more accountable supply chains, brands relying on vague or unsubstantiated ESG claims may find themselves increasingly exposed.
