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Millions in fines – but do they matter?

Shein’s European branch has faced two big penalties: €1 million in Italy and €40 million in France. These fines raise a bigger question: how effective is the EU at tackling greenwashing and holding huge digital companies accountable across borders?

Italy’s competition and consumer authority (AGCM) fined Infinite Styles Services Co. Ltd, which runs Shein’s EU operations, €1 million. Regulators argued that Shein’s environmental claims on its website – under sections like SHEININTHEKNOW, evoluSHEIN and Social Responsibility – were “unclear,” “vague,” and in some cases “deceptive.”

In short: Shein used glossy, green-sounding language to suggest strong eco standards, but avoided details or proof. That’s classic greenwashing – marketing sustainability without actually practicing it. According to AGCM, this content had been online since at least early 2023.

But here’s the catch: under Italy’s consumer code, fines can go up to €10 million, and penalties must be proportionate to local turnover. Shein reported just €3 million in Italian revenue in 2023. So the sanction, while headline-grabbing, may be little more than a symbolic cost of doing business for a company with billions in global revenue.

France hits harder

France took a tougher stance. In July, Shein was fined €40 million not just for misleading green claims, but also for shady business practices and lack of transparency. The French consumer watchdog didn’t give all the legal details, but the size of the fine shows they saw Shein’s actions as serious and systemic.

Both regulators highlighted Shein’s much-publicized promise: to cut greenhouse gas emissions by 25% by 2030. They concluded that the pledge was not only unverifiable but actually contradicted reality – Shein’s emissions were believed to have risen in 2023–2024.

The problem? Regulators didn’t have access to independent, audited emissions data. If emissions really increased, Shein’s evoluSHEIN strategy wasn’t just weak – it was misleading.

Shein’s response: PR over real change?

In response, Shein said it acted “immediately” to fix the website and now offers “clear, verifiable and compliant” information.

But regulators noted that misleading practices had been running since early 2023 – long before any corrections were made. That makes Shein’s “quick fix” sound more like a PR move to protect its image than a real reform of its business model.

The EU’s enforcement gap

Shein doesn’t just sell in France and Italy – it operates across the EU. Yet, so far, no other Member State has taken similar enforcement action.

This highlights a weakness in the EU’s regulatory model. The Digital Services Act (DSA) aims to increase accountability for online platforms, but its enforcement still depends on national regulators. With no strong central authority, companies like Shein can exploit differences between Member States, a practice known as forum shopping – setting up operations where oversight is weakest.

For Shein, Italy may look like a “safer” base compared to France’s tougher approach.

The bigger picture: fast fashion’s systemic problem

Greenwashing isn’t just a Shein issue – it’s built into the fast fashion model. This industry thrives on ultra-fast production, rock-bottom prices, and maximum profit with minimal regard for the environment. Eco-friendly claims are often just marketing gloss.

But as the EU increases pressure on companies to live up to their climate and sustainability commitments, the gap between corporate promises and actual practices is becoming harder to ignore.

What’s next?

  • Can the EU develop a consistent enforcement mechanism for digital giants?
  • Will the DSA and national watchdogs be enough to regulate global companies?

Or is there a need for a new, independent EU-level regulator with real cross-border power?

Why does it matter?

In an era where every company boasts about ESG goals and climate neutrality, weak enforcement risks undermining consumer trust. If greenwashing goes unpunished, it spreads misinformation and damages the credibility of Europe’s sustainability agenda.

The Shein case is more than a fashion industry scandal – it’s a stress test for the EU’s ability to protect consumers and hold global companies accountable in the digital age.

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