What: Shein faces €40 million ($47.17 million) fine in France for deceptive pricing practices and unsubstantiated environmental claims, with investigation revealing 57% of advertised deals offered no actual discounts.

Why it is important: This unprecedented penalty reflects growing regulatory scrutiny of fast-fashion business practices in Europe, particularly regarding pricing transparency, consumer protection, and environmental marketing claims.

The French consumer protection authority has imposed a substantial €40 million fine on Shein's European entity, Infinite Style E-Commerce Co Ltd, following an extensive investigation into their pricing practices. The probe, conducted between October 2022 and August 2023, uncovered systematic manipulation of reference prices and misleading promotional claims. Analysis revealed that 57% of advertised deals offered no actual price reduction, while 19% showed smaller discounts than advertised, and 11% represented price increases. Under French regulations, retailers must use the lowest price from the previous 30 days as a reference for any discount. The company was additionally cited for making unsubstantiated environmental claims. Although Shein acknowledged these breaches identified in March 2024 and claims to have implemented corrective measures within two months, the magnitude of the fine signals a significant shift in regulatory enforcement. The company maintains its commitment to complying with French regulations while noting that all identified issues were addressed more than a year ago.

IADS Notes: The €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 interventions across Europe, including stricter oversight of cross-border e-commerce. The timing is particularly significant as it coincides with broader challenges facing fast-fashion retailers, including Trump's elimination of the de minimis rule in April 2025 and the EU's proposed €2 fee on small packages in May 2025, fundamentally reshaping the regulatory landscape for digital retail.

Shein fined EUR 40 million for deceptive pricing in France - Fashion Network

Shein fined USD 47 million in France for misleading discounts - Inside Retail