Shein Fined €40 Million in France for Misleading Discounts & Dubious Green Claims

Key Takeaways

• SHEIN Fined €40 Million: France’s DGCCRF imposed the penalty after finding the company misled consumers with false price reductions and unsupported environmental claims.
• Majority of Discounts Were Misleading: 57% of reviewed promotions showed no real discount, and others exaggerated or fabricated savings, violating French pricing laws.
• Greenwashing Claims Unsubstantiated: SHEIN couldn’t provide evidence for its claims of cutting greenhouse gas emissions by 25% or being an environmentally responsible brand.

Deep Dive

The French government has fined online fashion retailer Shein €40 million after uncovering widespread deceptive practices in how the company advertised price reductions and promoted its environmental credentials.

The penalty follows an investigation by France’s consumer enforcement body, the DGCCRF, which found that Shein’s French operator, Infinite Style E-commerce LTD, misled shoppers on both the reality of its sales and the credibility of its sustainability claims. According to the agency, more than half of the promotional offers reviewed on fr.shein.com between October 2022 and August 2023 offered no actual price reduction at all.

Instead, Shein frequently used crossed-out prices and inflated discounts to give the impression of a deal—even when none existed. In many cases, investigators found that the supposed “discounted” price was equal to or higher than the price previously charged, in violation of French rules that require discounts to be based on the lowest price charged in the previous 30 days.

Beyond pricing, the brand’s green messaging also came under fire. Shein had claimed it was reducing its greenhouse gas emissions by 25% and positioning itself as an environmentally responsible company. But when pressed, it was unable to provide evidence to back up those claims. The DGCCRF deemed the messaging misleading and part of a broader pattern of deceptive marketing.

With approval from the Paris public prosecutor, the case was resolved through a settlement, with Shein accepting the €40 million fine. The DGCCRF said it would continue to monitor the company’s practices and urged consumers to remain cautious of promotions that appear too good to be true.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.