What: Italy's competition authority fines Shein €1 million for greenwashing, marking the company's second European penalty for misleading environmental claims within two months.

Why it is important: The consecutive penalties in France and Italy signal a coordinated European approach to combat greenwashing in fast fashion, forcing retailers to provide concrete evidence for environmental claims or face significant financial consequences.

Italy's competition authority (AGCM) has imposed a €1 million fine on Shein for misleading environmental claims, targeting the company's European operations through its Dublin-based entity, Infinite Styles Services Co. The investigation, launched in September 2024, revealed that Shein's sustainability messaging was often vague, generic, and misleading, particularly regarding its 'evoluShein by design' collection. The regulator found that claims about circular system design and product recyclability were false or confusing, with the company overstating the green credentials of its collection. AGCM specifically criticised Shein's commitments to reduce greenhouse emissions by 25% by 2030 and achieve net zero by 2050, noting these targets contradicted actual emissions increases in 2023 and 2024. The authority emphasised that Shein bears an increased duty of care due to its operation in a highly polluting sector, particularly in fast and ultra-fast fashion. This penalty follows a larger €40 million fine imposed by French authorities in July 2025, highlighting intensifying regulatory scrutiny of environmental claims in the fashion industry.

IADS Notes: The €1 million fine imposed on Shein by Italy's AGCM in August 2025 represents the latest development in an intensifying regulatory crackdown on fast-fashion retailers in Europe. This follows France's substantial €40 million penalty in July 2025 for misleading pricing practices and environmental claims, demonstrating escalating scrutiny of the sector. The company's challenges with environmental messaging come despite attempts to improve its image, including the January 2025 launch of a €5 million sustainability foundation. The timing is particularly significant as it coincides with broader regulatory changes, including the EU's February 2025 implementation of comprehensive textile waste management requirements and the March 2025 introduction of CSRD, CSDDD, and ESPR sustainability directives. These developments reflect a fundamental shift in how regulators approach environmental claims in retail, with authorities increasingly demanding concrete evidence to support sustainability statements.

Shein fined 1 million euros in Italy over greenwashing