Shein faces probe in Italy over alleged greenwashing

Italy’s antitrust agency has launched an investigation into a Dublin-based company that operates Shein‘s website and app over possibly misleading environmental claims made on the fast-fashion retailer’s website. The investigation targets Infinite Styles Services CO. Limited and accuses Shein’s website of trying “to convey an image of production and commercial sustainability of its garments through generic, vague, confusing and/or misleading environmental claims,” the antitrust agency said in a statement. Shein said it was “ready to cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries”. The probe is the latest in a string of investigations by regulators across Europe into potentially misleading environmental claims by companies, as new European Union regulation seeks to crack down on greenwashing. The Italian authority said some information the website gives about Shein’s ‘evoluSHEIN’ collection could mislead consumers about the amount of “green” fabrics used, while also failing to inform them that the garments are not recyclable. It also said that Shein’s website appeared to emphasise a commitment to decarbonisation which seems to be contradicted by the increase in greenhouse gas emissions shown in Shein‘s sustainability reports for 2022 and 2023. Founded in China, Shein is known for its cheap tops and dresses. Its treatment of workers and environmental record have come under increased scrutiny following reports that it could list its shares in London. Under European Union anti-greenwashing regulations that came into force this year and will apply in all member states in two years’ time, companies are banned from making vague environmental claims about their products, like labelling them “energy efficient” or “environmentally friendly” if they don’t provide evidence to back them up. “We’re going through a green claims correction period, where companies are either going to be investigated and fined, or they go away and get the data to really substantiate and accurately communicate specific claims,” said Abbie Morris, CEO of Compare Ethics, which checks green claims compliance for clients like Reformation and New Look. Shein, in its statement, said it was committed to complying with laws and regulations in the markets where it operates and to maintaining transparency with its customers. Italy’s antitrust body, which is in charge of consumer protection as well as competition issues, recently opened investigations into online search giant Google and luxury brands Armani and Dior. Under Italian legislation, companies found in breach of consumer rights rules face fines ranging from 5,000 euros to 10 million euros ($5,590-$11.2 million). Shein has its Europe, Middle East and Africa headquarters in Dublin. Its global headquarters are in Singapore. ($1 = 0.8943 euros) —Elisa Anzolin and Helen Reid, Reuters