Italy launches greenwashing investigation into Shein’s environmental claims

September 27, 2024

The Italian Competition Authority has opened an investigation into global fashion online retailer Shein due to misleading claims about its sustainability practices on the company’s website.

The anti-trust authority’s investigation will focus on Infinite Styles Serves Co, the operator of Shein’s website and app, over potentially misleading environmental claims related to Shein-branded clothing in various sections of the website.

The authority claims environmental references on the website are deceptive or omit information as images promoting Shein’s clothing as sustainable on the website are done “through generic, vague, confusing and/or misleading environmental claims.”

It will also examine environmental claims regarding circularity, product quality and responsible consumption, which could have been used to capitalise on increased customer awareness of the environmental impact of their purchasing decisions.

In particular, the watchdog cited information from Shein’s “evoluShein” collection, which it said may have mislead consumers into thinking the clothes advertised could be recycled.

It will also investigate the use of phrases such as “#SHEININTHEKNOW” and “social responsibility” on the website.

The authority further alleged that Shein’s stated commitment to decarbonisation featured on its website was in “apparent contradiction” with the increases in greenhouse gas emissions reported in its 2022 and 2023 sustainability reports.

The investigation follows increased regulatory scrutiny of greenwashing in the fashion industry. In May, Canada’s Competition Bureau launched an investigation into lululemon over allegations of greenwashing tied to its ‘Be Planet’ marketing campaign.

The fashion industry as a whole has faced further pressure to improve sustainability efforts as Dutch investor ASN Impact Investor sold €70 million worth of shares in fast fashion companies to send a “strong signal” that clothing brands must make significant progress to improve sustainability.

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