Shein faces scrutiny in Italy over environmental practices and greenwashing allegations

Italy's competition authority has launched an investigation into a Dublin-based company that operates Shein's website and app over potentially misleading consumers about the fast-fashion retailer's environmental sustainability claims. The inquiry centres on whether the retailer engaged in “greenwashing” by overstating or misrepresenting its sustainability practices.

The Italian Competition Authority (AGCM) issued a statement outlining the focus of its probe, which targets Infinite Styles Serves Co Limited, the Dublin-based company responsible for running Shein’s website and app. Though founded in China, Shein now operates out of Singapore and has rapidly grown into a global retail powerhouse, offering ultra-affordable clothing and accessories through a business model that responds to real-time demand and primarily sources from factories in China.

Shein’s ability to produce and deliver a wide array of items at rock-bottom prices—such as $11 sweaters and $2 phone cases—has attracted millions of customers. However, the company has long faced criticism for contributing to overconsumption and environmental degradation, issues Shein claims, it is addressing.

Shein's claims

The AGCM alleges that Shein has made deceptive claims about the environmental impact of its products, particularly on its Italian website. According to the watchdog, some of the environmental claims are either unclear or omit critical details, while images on the site present Shein's products as sustainable “through generic, vague, confused and/or misleading environmental assertions.” 

The authority's concerns specifically point to Shein's “evoluShein” collection, which may have given customers the false impression that the clothing purchased could be recycled. Additionally, AGCM flagged inconsistencies between Shein's declared commitment to reducing its carbon footprint and the reported increases in greenhouse gas emissions in its 2022 and 2023 sustainability reports.

In response, Shein pledged to cooperate with the investigation. “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,” the company said in a statement.

This isn’t the first time Shein has come under scrutiny in Europe. Advocacy groups, including Amnesty International UK, have raised concerns about the company’s labour practices and environmental impact, opposing its potential listing on the London Stock Exchange.