The Chinese fast fashion giant, Shein, is facing an investigation in Italy over its sustainability claims. Italy’s antitrust watchdog, the independent competition authority, is probing the online retailer for potentially making misleading statements about its environmental practices. The investigation, dubbed a ‘greenwashing’ probe, will focus on Infinite Styles Serves Co. Limited, a Dublin-based company that operates Shein’s website and app. Shein, while founded in China, is currently headquartered in Singapore. The company has experienced a meteoric rise in the retail world, driven by a business model that allows it to rapidly produce clothing based on real-time demand and deliver it directly to customers from factories primarily located in China. This model has enabled Shein to offer products at incredibly low prices, attracting a massive customer base drawn to its €10 sweaters, €2 phone cases, and other items, constantly updated across its vast assortment.
However, critics have long argued that Shein’s business practices encourage overconsumption and environmental waste. The company, while acknowledging these concerns, has claimed to be working on addressing them. Yet, Italian officials are accusing Shein of misleading consumers with claims about the environmental sustainability of its clothing. Environmental organizations have accused companies across the corporate world of engaging in similar deceptive practices, known as ‘greenwashing.’
Italy’s anti-trust authority, known as AGCM, alleges that some of the environmental references on Shein’s Italian website are deceptive or omit crucial information. The authority also claims that images promoting Shein’s clothing as sustainable rely on “generic, vague, confused, and/or misleading assertions.”
Specifically, the watchdog is investigating claims made regarding Shein’s ‘evoluShein’ collection. They suspect that the collection may have misled consumers into believing that the clothes purchased could be recycled. The AGCM also alleges that Shein’s stated commitment to decarbonization on its website appears to contradict the increase in greenhouse gas emissions reported in the company’s sustainability reports for 2022 and 2023.
Shein has stated its intention to cooperate fully with the Italian investigation. In a statement, the company said, “We would also like to take this opportunity to reaffirm our commitment to complying with the laws and regulations in the markets where we operate and to maintaining transparency with our customers.”
The Italian investigation is not the only challenge Shein is facing in Europe. Critics and advocacy groups such as Amnesty International UK have opposed the company’s potential listing on the London Stock Exchange due to concerns related to labor and environmental practices.
This investigation highlights the growing scrutiny of fast fashion companies and their sustainability claims. As consumers become more aware of the environmental impact of their purchases, companies like Shein will likely face increased pressure to adopt more sustainable practices and ensure their claims are transparent and accurate.
