Shein, under the magnifying glass of Italy’s antitrust authority, faces accusations of misleading sustainability claims.
At a Glance
- Italy’s antitrust watchdog is investigating Shein for potentially misleading sustainability claims.
- The investigation targets Infinite Styles Serves Co. Limited, a Dublin-based company operating Shein’s website and app.
- Shein’s rapid growth stems from offering ultra-low prices and a wide variety of items.
- Critics argue Shein’s business model encourages overconsumption and environmental waste.
- Shein faces additional scrutiny in Europe over labor and environmental concerns.
Investigation into Shein’s Sustainability Claims
Italy’s antitrust authority, AGCM, has launched an investigation into Shein for allegedly making deceptive sustainability claims. The probe focuses on Shein’s Dublin-based entity, Infinite Styles Serves Co. Limited, which is responsible for running the company’s website and app. The watchdog claims that Shein’s environmental references are vague, misleading, or lack crucial details.
Shein, originally founded in China and now based in Singapore, has surged in popularity by offering ultra-low prices and a wide array of items. Yet, the company’s business practices have raised concerns. Critics argue that Shein encourages overconsumption and contributes to significant environmental waste, a concern that resonates with global sustainability initiatives.
Critics of Shein’s practices are vocal on social media, raising various points of contention.
Shein Faces Italian Antitrust Scrutiny Over Environmental Claims https://t.co/SqpJqOLr1W
— WSJ Business News (@WSJbusiness) September 25, 2024
Italy’s AGCM Accusations
Italian officials have accused Shein of “greenwashing” — making deceptive claims about the environmental sustainability of its products. AGCM particularly criticizes Shein’s “evoluShein” collection, which allegedly misled consumers regarding recyclability and other ecological benefits. The watchdog points out contradictions between Shein’s professed decarbonization commitments and its actual greenhouse gas emissions.
“Italy’s antitrust watchdog is investigating the online fast fashion giant Shein for potentially making misleading claims about its sustainability practices.”
In response to the investigation, Shein has expressed its intention to cooperate fully. “We would also like to take this opportunity to reaffirm our commitment to complying with the laws and regulations in the markets where we operate and to maintaining transparency with our customers,” the company said in a statement.
Further Scrutiny from Europe
Beyond Italy, Shein faces growing scrutiny across Europe. Groups like Amnesty International UK oppose Shein’s potential listing on the London Stock Exchange due to ongoing concerns about its labor and environmental practices. This reaction reflects a broader discontent with fast fashion companies that seem to prioritize profit over ethical responsibilities.
As AGCM continues its investigation, Shein’s sustainability claims will remain under the spotlight. The outcome could signal a significant turning point for fast fashion’s accountability and transparency in environmental matters.
Sources
1. Shein faces scrutiny in Italy over possible greenwashing
