The Italian Competition Authority, AGCM, has initiated an investigation into Infinite Styles Services, the operator of the Italian Shein website, over allegations of misleading advertising.
The probe focuses on the company's environmental claims, which are suspected of being vague and potentially deceptive to consumers.
The claims that the authority deems potentially misleading pertain to "circularity," product quality and responsible consumption.
The investigation also highlights potential issues with the "evoluSHEIN" collection, which is marketed as sustainable.
The AGCM suggests that the company may mislead consumers about the amount of "green" fibres used and that it fails to inform them about the non-recyclability of the garments.
Despite Infinite Styles Services' professed commitment to reducing its carbon footprint, the AGCM notes a discrepancy between stated goals and the increased greenhouse gas emissions reported in Shein's sustainability documents for 2022 and 2023.
Shein has expressed its willingness to "cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries".
This probe is part of a broader regulatory effort across Europe to address potentially misleading environmental claims by companies, in line with new European Union regulations aimed at combating greenwashing.
Italy's antitrust body, responsible for consumer protection and competition issues, has also recently initiated investigations into luxury brands Armani and Dior.
Under Italian law, companies violating consumer rights regulations could face penalties between €5,000 and €10m ($5,590 to $11.2m).
In August 2024, Shein reported two cases of child labour in its supply chain, revealed in its 2023 sustainability and social impact report.
