Italy’s competition watchdog has fined Shein €1 million for publishing misleading environmental claims on its website.
The decision follows a €40 million fine imposed by France last month for similar breaches. Italy’s Antitrust Authority (AGCM) announced on Monday that the Dublin-based Infinite Styles Services Co. Limited, which operates Shein’s European website, was responsible.
AGCM found that Shein had used “vague, generic and overly emphatic” language in its online sustainability messaging. The contested claims appeared in sections titled #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility.
In some cases, Shein’s statements were “false or at least confusing,” particularly claims related to product recyclability and a “circular system” for waste reduction.
The regulator said the company omitted key information, misleading consumers about the environmental impact of its business model. The findings came after an 11-month probe.
France’s DGCCRF reached similar conclusions last month, accusing Shein of “misleading commercial practices” regarding price discounts and green commitments.
Shein accepted the fine in Italy and said it had already taken steps to address the concerns raised by AGCM.
Despite ongoing regulatory challenges, the China-founded retailer remains highly profitable. Sources told Bloomberg that Shein earned more than $400 million (€346 million) in net income in the first quarter of 2025, with revenues approaching $10 billion (€8.6 billion).
Shein’s business model, based on ultra-low prices and fast production cycles, has drawn criticism over its environmental and labour practices. These concerns have also affected the company’s ambitions to go public.
Its plan to list in London has stalled, reportedly due to disagreements between UK and Chinese regulators over the language related to human rights in its IPO documents. Shein has faced allegations of sourcing cotton from Xinjiang, where China stands accused of forced labour practices targeting the Uyghur minority.
Due to delays in London, Shein has now confidentially filed for a listing in Hong Kong, according to reports.
The European Commission is also reviewing Shein’s compliance with EU consumer protection laws and the Digital Services Act.
