Italy’s antitrust regulator is currently looking into Shein, an online fast fashion giant, to determine the validity of its sustainability claims. The investigation is centered on Infinite Styles Serves Co. Limited, which operates Shein’s website and app. Although initially founded in China, Shein is now headquartered in Singapore and has rapidly expanded in the retail industry by producing apparel based on real-time demand and shipping directly from factories primarily based in China.
This business model has facilitated Shein’s ability to offer products at extremely low prices, attracting customers with items like $11 sweaters and $2 cellphone cases from a frequently updated catalog. Despite these competitive prices, critics argue that Shein’s practices contribute to overconsumption and environmental harm, issues the company has stated it is addressing.
However, Italian authorities have raised concerns about potential misleading advertising regarding the environmental sustainability of Shein’s products. The Italian antitrust authority, AGCM, alleges that Shein’s environmental claims on its Italian website are deceptive or lack important information. AGCM also criticized Shein’s “evoluShein” collection for potentially misleading consumers into believing the clothing was recyclable.
Furthermore, the AGCM highlighted discrepancies between Shein’s commitment to decarbonization on its website and the greenhouse gas emission increases documented in the company’s 2022 and 2023 sustainability reports. Shein has expressed its intention to fully cooperate with the Italian investigation and reiterated its commitment to following laws and regulations in all its operating markets while maintaining transparency with customers.
Beyond Italy, Shein has encountered challenges elsewhere in Europe. Organizations like Amnesty International UK have voiced objections to Shein’s potential listing on the London Stock Exchange citing concerns about labor practices and environmental impacts. As scrutiny on fast fashion companies intensifies, Shein and similar retailers face growing pressure to address sustainability issues and ensure the accuracy of their environmental claims.
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