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Shein in Antitrust's Crosshairs: Investigation into Deceptive Sustainability Practices

Antitrust investigates Shein for alleged misleading sustainability advertising. And there is alarm over chemicals found in its fabrics

Shein in Antitrust's Crosshairs: Investigation into Deceptive Sustainability Practices

The Italian antitrust (Agcm) has Investigation launched against Shein, the Chinese fast fashion giant, for alleged misleading advertising practices regarding environmental claims related to their products. The Italian site of the platform, managed by the company Infinite Styles Services CO. Limited based in Dublin, has come under scrutiny for some statements contained in the sections “#Sheintheknow”, “evoluShein” and “Social Responsibility”.

The Antitrust suspects that these statements could mislead consumers, leading them to believe that the garments sold by Shein are more sustainable than they really are.

Accusations of misleading advertising

According to the AGCM, Shein would have used generic, vague and misleading statements to promote the sustainability of its clothing. In particular, criticism focuses on the “evoluShein” collection, declared “sustainable” by the company, whose communication could mislead consumers regarding the actual quantity of “green” fibers used and the real recyclability of the products. These assertions, according to the Antitrust, could exploit the growing sensitivity of consumers towards sustainability, creating a distorted image of the environmental impact of Shein products.

Furthermore, the information on the decarbonisation process company claims are ambiguous. Although Shein claims to be committed to reducing its greenhouse gas emissions, its 2022 and 2023 sustainability reports show a significant increase in emissions, contradicting the claims on its website.

Fast Fashion and Sustainability: An Intrinsic Conflict

The issue raised by the Antitrust reflects a broader problem related to the entire fast fashion sector, a business model that focuses on the rapid and low-cost production of large quantities of clothing. Despite claims by many companies, including Shein, of wanting to become more sustainable, the fast fashion is structurally difficult to make environmentally responsible. Large-scale production, massive consumption of resources and the short lifespan of products sold at very low prices make it difficult to reconcile this model with sustainability standards.

Shein, in particular, stood out for having introduced the concept of “super fast fashion”, with collections that change at an even faster pace than traditional competitors. This model leads to overconsumption and significant environmental impact, further complicating the company's sustainability promises.

The alarm on toxic chemicals

In parallel with the antitrust investigation, Shein has been involved in another controversy related to the safety of its products. A recent study published by the rGerman magazine Öko-Test highlighted the presence of toxic chemicals in some items sold on the platform. The study analyzed 21 clothing items, finding that many of them contained dangerous substances such as lead, cadmium, banned phthalates, antimony, dimethylformamide and other compounds harmful to health.

Shein responded promptly to the accusations, saying it works closely with international testing agencies such as Intertek, SGS, BV and TUV to ensure its products comply with safety standards. The company stressed that it has conducted over 400.000 chemical safety tests in the past 12 months to verify compliance with regulations. The discovery of toxic substances has, however, raised concerns further doubts about transparency and reliability of Shein's business practices.

The European Challenge: The Digital Market Act

To further complicate Shein's position on the European market, the European Commission, which has included the company's website among the “very large digital platforms” (very large digital platforms), such as Amazon, TikTok or Meta. This means that Shein will now have to comply with strict regulations imposed by the Digital Markets Act (Dma), which provides for stricter rules to protect users, especially minors, and to combat illegal content.

The DMA was introduced to ensure that large digital platforms operate transparently and responsibly, avoiding anti-competitive behavior and protecting users' rights. Shein, having been included in this category, will face increased scrutiny over its business practices and content management.

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