What: Shein faces a record EUR 40 million fine in France for misleading pricing practices, including false discounts and price manipulation, following an extensive investigation by French consumer protection authorities.

Why it is important: The unprecedented penalty reflects a broader shift in how regulators are addressing fast-fashion business models, particularly regarding pricing transparency and consumer protection in digital retail.

The French consumer protection authority has imposed a EUR 40 million fine on Shein's European entity, Infinite Style E-Commerce LTD, for deceptive pricing practices. The investigation revealed systematic manipulation of reference prices and misleading discount claims, with 57% of examined promotions offering no actual price reduction, 19% showing smaller discounts than advertised, and 11% actually representing price increases. The investigation, conducted between October 2022 and August 2023, analysed thousands of products on Shein's website, uncovering a pattern of inflated original prices and misleading promotional claims. The company was also cited for making unsubstantiated environmental claims. In response, Shein has acknowledged the findings and implemented corrective measures within two months of notification, though maintaining these changes did not affect final consumer prices. The French authorities continue to monitor the situation, emphasising their commitment to enforcing pricing transparency in digital retail.

IADS Notes: The EUR 40 million fine imposed on Shein in France represents a culmination of mounting regulatory pressure on fast-fashion platforms. In June 2025, BEUC filed a complaint regarding manipulative pricing practices, while February 2025 saw the EU implement comprehensive platform liability reforms. The French action follows similar regulatory interventions, such as the EUR 400,000 fine imposed on Attica Department Stores in January 2025 for misleading pricing practices. This enforcement trend coincides with broader challenges facing fast-fashion retailers, as evidenced by April 2025's forced pricing strategy adjustments due to changing trade policies. The magnitude of the French fine signals an escalation in regulatory oversight of digital retail pricing practices, particularly regarding transparency and consumer protection.

Shein fined €40m for deceptive pricing in France