Italian Watchdog Probes Shein Over Greenwashing

Italy’s antitrust watchdog is investigating fast fashion giant Shein for potentially misleading claims about its sustainability practices, Haleluya Hadero reported for the Associated Press (AP).

Critics argue that Shein’s practices contribute to overconsumption and environmental waste, issues the company claims to be addressing. I Photo: Dick Thomas Johnson Flickr

The independent competition authority stated that the greenwashing probe will focus on Infinite Styles Serves Co. Ltd., a Dublin-based firm that operates Shein’s website and app. Although Shein was founded in China, it is now headquartered in Singapore.

The company’s rapid rise has been fueled by a business model that allows it to produce apparel based on real-time demand and ship directly from Chinese factories to customers.

This has enabled Shein to offer ultra-low prices, attracting shoppers with €10 sweaters and €2 phone cases.

However, critics argue that Shein’s practices contribute to overconsumption and environmental waste, issues the company claims to be addressing. Italian officials allege that Shein misleads consumers with claims about the environmental sustainability of its clothing.

Environmental groups have long criticized companies for such greenwashing. Italy's antitrust authority, known as AGCM, accused Shein of making "generic, vague, confused, and/or misleading environmental assertions" on its Italian website.