Fast Fashion Greenwashing: SHEINâs US$1.15m Fine from Italy
SHEIN is in the sustainability spotlight again.
The Italian Competition Authority (AGCM) has imposed a fine of âŹ1m (USD$1.15m) on Infinite Styles Services Co. Ltd, the company responsible for managing SHEINâs product trading websites in Europe.
"The âŹ1m (US$1.15m) fine is for the use of misleading and deceptive environmental messages and claims â known as greenwashing," says the AGCM.
The launch of the investigation
The issuing of the fine comes after an investigation was launched in September 2024.
The AGCM launched an investigation into the possibility of misleading advertising claims made on the site regarding the environmental sustainability of SHEIN branded clothing.
Through its website and other promotional and/or informational online pages, the company disseminated environmental claims within the sections:
- #SHEINTHEKNOW
- evoluSHEIN
- Social Responsibility
These were deemed, "in some instances, vague, generic and/or overly emphatic and in others, misleading or omissive," says the AGCM.
The inspection is in line with France taking a decisive legislative step to curb the environmental and social costs of ultra-fast fashion.
In a move that could set a precedent across Europe, the French Parliament approved a bill targeting low-cost, high-volume fashion giants such as SHEIN and Temu in June 2025.
With proposed changes including eco-taxes, advertising bans and mandatory sustainability disclosures, the bill marks one of the most comprehensive responses to date to the growing problem of fashion overproduction and textile waste.
Is SHEIN greenwashing?
The AGCM found that the environmental assertions in the #SHEINTHEKNOW section, regarding the âdesign of a circular systemâ or the recyclability of products, to be "false or at least confusing".
Claims used by SHEIN to present, describe and promote clothing in the section evoluSHEIN, emphasise the use of âgreenâ fibres however, the environmental benefits of such fibres are not specified, the AGCM says.
The AGCM also states that "SHEIN hasnât specified whether there are environmental benefits throughout any part of the clothing life cycle and does not clarify that this line remains a marginal share of the total SHEIN-branded offering."
âAs one of the worldâs largest fashion and retail platforms and a pioneer in on-demand fashion, SHEIN represents a disruptive model with the potential to drive sustainability at an unparalleled scale," Mustan Lalani, Global Head of Sustainability at SHEIN, worte in a LinkedIn post after joining the company in January 2025.
âMy focus will be on embedding circularity, decarbonisation and strategic partnerships into the core of the business."
The AGCM also states that "these claims may lead consumers to believe that not only the evoluSHEIN by Design collection is made solely from sustainable materials, but also that products are fully recyclable."
These statements are not deemed to reflect reality, according to the AGCM.
Is SHEIN on track to net zero?
Statements by SHEIN about its intention to reduce GHG emissions by 25% by 2030 and to reach zero emissions by 2050 are presented in its Social Responsibility section.
The AGCM states that these are done so in a "vague and generic way" and were even "contradicted by an actual increase in SHEINâs GHG emissions in 2023 and 2024."
Europeâs fast fashion law
On 10 June 2025, the French Senate approved a bill to regulate ultra-fast fashion, with 337 votes in favour and only one against.
The legislation will now move to a joint committee of senators and deputies in September.
The European Commission will also be notified to ensure compliance with EU regulations.
A key provision is the introduction of environmental surcharges on ultra-fast fashion items. From 2025, each item sold will carry a €5 (approximately US$5.80) tax, rising to €10 (roughly US$11.60) by 2030.
To protect affordability, the surcharge will be capped at 50% of an item’s retail price, encouraging more sustainable purchasing decisions.
Funds raised will be redirected to support sustainable fashion producers in France.
