Friday, 08 August 2025
Shein, the global e-retail giant known for its ultra-fast fashion model, has been fined €1 million by Italy’s competition authority (AGCM) for greenwashing, the use of misleading environmental claims in its marketing. The fine was issued to Infinite Styles Services, the Dublin-based company managing Shein’s European websites, and comes amid broader scrutiny of misleading sustainability claims in the fashion industry.
In a statement released on the 4th of August, AGCM found that Shein used ‘misleading and/or deceptive’ environmental messaging to promote its clothing products.
Specifically, Shein had promoted sustainability claims through various marketing initiatives, including:
The #SheinInTheKnow and #EvoluShein campaigns
The Social Responsibility section of its website
According to the AGCM, these claims were vague, confusing, or lacking adequate explanation, particularly those relating to the use of so-called ‘green fibres’ in its EvoluShein product line. The watchdog noted that Shein failed to clearly outline the environmental benefits across the full life cycle of these materials.
Additionally, Shein’s claims regarding product recyclability were found to be either false or at least misleading, with the AGCM stating that consumers may have wrongly believed that the products were made from entirely sustainable or recyclable materials—a representation that ‘does not reflect reality.’
Perhaps most significantly, the AGCM cited a contradiction between Shein’s stated climate goals and its actual performance. The company has publicly claimed a commitment to:
Reducing greenhouse gas (GHG) emissions by 25% by 2030
Achieving net-zero emissions by 2050
However, AGCM found that Shein’s GHG emissions increased during both 2023 and 2024, directly undermining those public commitments.
This is not the first time Shein has faced scrutiny for its environmental claims. Earlier in 2024, an investigation by the European Commission and the Consumer Protection Cooperation Network found that Shein had breached EU consumer laws by:
Making misleading claims about product sustainability
Providing incomplete or incorrect information about consumers’ legal return rights
Failing to process returns and refunds properly
These findings, along with AGCM’s decision, underscore the mounting regulatory pressure on companies making unverified environmental claims.
The rise in greenwashing complicates the consumer landscape. Research shows that consumers, even when trained, struggle to distinguish between legitimate environmental efforts and marketing spin. According to Sinn Féin MEP Lynn Boylan, the proliferation of greenwashing has led to ‘general cynicism toward climate action, even genuine climate action.’
The AGCM’s ruling reinforces the importance of transparency and accountability, especially as more companies use environmental claims to appeal to conscious consumers.
Shein reported approximately $38 billion in global sales in the previous year, according to the Financial Times
It officially established its Europe, Middle East, and Africa (EMEA) headquarters in Dublin in 2023
The brand has faced criticism for promoting ‘disposable fashion,’ given the extremely short lifecycle and low durability of many of its products
Other e-commerce platforms are also under scrutiny. Temu, a rival platform whose parent company is also based in Dublin, has been found in breach of the EU’s Digital Services Act for failing to manage the risk of non-compliant or dangerous products, including toys containing illegal levels of borates and phthalates, substances known to pose reproductive and hormonal health risks.
Both Shein (via Infinite Styles Services) and Temu (via a Dublin-based parent company) have strategically chosen Ireland as their base for EU operations. This is partly due to:
Favorable tax regimes
Access to EU markets
Business-friendly regulatory environment
However, this position also places Ireland at the centre of regulatory and ethical debates surrounding fast fashion and e-commerce oversight.
Shein and Temu’s use of Dublin-based entities to manage their European operations raises serious questions about Ireland’s role in enabling the European presence of controversial fast fashion platforms and how this aligns (or conflicts) with Ireland’s sustainability goals and international environmental commitments.
Does this mean we need to impose stricter oversight on Dublin-based companies and their disclosures?
The €1 million fine issued by Italy’s AGCM represents a significant moment in the EU’s growing efforts to regulate greenwashing and misleading corporate sustainability claims. As companies increasingly adopt environmental messaging, authorities are stepping in to ensure those claims are accurate, verifiable, and not deceptive. For Shein, the fine reflects the tension between public relations and actual environmental impact, and marks another chapter in the growing global push for accountability in fashion and beyond.
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