Shein faces greenwashing investigation in Italy
Shein is currently being investigated by the Italian Competition Authority regarding allegations of greenwashing, as stated in a press release issued last week.
The inquiry is directed at Infinite Styles Services Co., based in Dublin, which oversees Shein’s online operations in Italy. The investigation suggests that the fast fashion retailer may have misled consumers concerning its environmental claims, with particular emphasis on the sections of Shein’s website labeled “#SHEINTHEKNOW,” “evoluSHEIN,” and social responsibility.
A spokesperson for Shein indicated via email to Fashion Dive, a sister publication of ESG Dive, that the company is prepared to collaborate fully with the Italian government to resolve the matter.
Italy's antitrust authority is conducting an investigation into the online fast fashion retailer Shein for potentially making deceptive claims regarding its sustainability practices.
The independent competition authority of the country announced in a statement that the investigation into greenwashing will target Infinite Styles Serves Co. Limited, a company based in Dublin that operates under the name Shein and manages the retailer's website and application. Originally founded in China, Shein is now headquartered in Singapore.
The company has experienced rapid growth in the retail sector, driven by a business model that enables it to produce clothing in response to real-time demand and ship directly to consumers from factories predominantly located in China. This approach has allowed Shein to offer products at extremely low prices, attracting consumers who can purchase items such as $11 sweaters and $2 cellphone cases from a constantly refreshed selection.
Shein has issued a statement: “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.”
Criticism for fast fashion
Shein has faced criticism for its business practices, which many argue promote overconsumption and contribute to environmental waste. The retailer has stated that it is actively addressing these issues. Nonetheless, Italian authorities have accused the company of misleading consumers regarding the environmental sustainability of its products. Environmental groups have claimed that such deceptive practices, often referred to as greenwashing, are prevalent throughout the corporate sector.
Shein has encountered difficulties in other parts of Europe. Critics and advocacy organisations, including Amnesty International UK, have expressed opposition to the company's potential listing on the London Stock Exchange, citing concerns related to labor practices and environmental issues.
