Italy Opens Investigation into Shein Over Alleged Greenwashing on Website

Italy’s antitrust agency has initiated an investigation into Infinite Styles Services CO. Limited, a Dublin-based company that manages the Italian website of fast-fashion giant Shein. The probe comes in response to concerns that the company might be making misleading environmental claims on the platform, potentially deceiving customers regarding the sustainability of their garments.

The Italian Competition Authority is accusing the company of attempting "to convey an image of production and commercial sustainability of its garments through generic, vague, confusing and/or misleading environmental claims," according to an official statement. The authority believes that these claims, presented on Shein's Italian website, may not accurately reflect the environmental impact of the company’s production and operations.

Targeting Infinite Styles Services

The probe focuses on Infinite Styles Services, which operates Shein's websites and mobile applications across Europe, including Italy. The company, which facilitates Shein’s European operations, has not yet responded to requests for comment, and neither has Shein.

According to the Italian authority, some of the claims on Shein’s Italian platform, particularly those related to the 'evoluSHEIN' clothing collection, could mislead consumers about the sustainability of the products. The collection is marketed as being eco-friendly and made with "green" fibres, but the authority suggests that the information may not disclose the full truth, such as the garments' inability to be recycled further. This has raised significant concerns over whether Shein’s green marketing aligns with the company’s actual environmental practices.

Discrepancies in Decarbonisation Claims

Another focal point of the investigation is Shein’s apparent commitment to decarbonisation, prominently highlighted on its website. However, this commitment seems at odds with Shein’s own sustainability reports for 2022 and 2023, which show a rise in the company's greenhouse gas emissions, a troubling indicator for a company that claims to prioritise the reduction of its carbon footprint.

Shein, originally founded in China, has become a global leader in fast fashion, particularly known for its affordable tops, dresses, and other apparel. However, its rapid production cycle, questionable labour practices, and environmental impact have drawn increasing scrutiny. The latest probe adds to a growing list of concerns as Shein contemplates listing its shares on the London Stock Exchange.

The European Union’s Crackdown on Greenwashing

Italy’s investigation comes amid broader efforts by the European Union (EU) to combat greenwashing. The EU recently enacted anti-greenwashing regulations, which aim to prevent companies from making vague environmental claims without providing verifiable evidence. Under the regulations, labels such as “environmentally friendly” or “energy efficient” are banned unless backed up with concrete data. These rules will be enforced across all member states within two years.

Italy’s Role in Consumer Protection

In addition to overseeing competition, Italy’s antitrust agency is responsible for consumer protection. The agency has recently been active in cracking down on various sectors, launching probes into companies like Google, as well as high-end luxury brands such as Armani and Dior. In the case of Shein, the potential penalties are significant. Companies found in breach of Italian consumer protection laws can face fines ranging from 5,000 to 10 million euros ($5,590-$11.2 million).

With Shein headquartered in Dublin for its Europe, Middle East, and Africa operations, and its global headquarters located in Singapore, the company has seen rapid expansion. However, this investigation marks a crucial moment as European regulators and authorities focus on ensuring that companies do not mislead consumers through unsubstantiated green claims.

Shein’s Future Under Scrutiny

As the investigation progresses, the outcome could have significant implications for Shein’s reputation and future operations in Europe. If found guilty of greenwashing, the company may face hefty fines, adding to the growing pressure from activists and consumers to adopt more sustainable practices. Furthermore, with increasing regulatory oversight in the EU, Shein’s ability to market its products with green credentials may be severely restricted unless it can provide transparent and verifiable evidence of its environmental efforts.