Shein Confronted with Record Fine of €40 Million for Misleading Commercial Practices
Parijs, donderdag, 3 juli 2025.
The French Competition Authority DGCCRF has imposed a historic fine of €40 million on Shein, the Chinese fast fashion giant. The sanction follows an in-depth investigation into misleading commercial practices, revealing that 57% of checked advertisements offered no price reduction and 19% offered a lower discount than advertised. The investigation also uncovered that Shein strategically increased prices before applying discounts, thereby deceiving consumers about actual savings. Moreover, the company’s environmental efforts were critically examined, indicating broader concerns about transparency and fair trading practices in modern e-commerce.
Misleading Price Strategies Exposed
The DGCCRF revealed serious irregularities in Shein’s pricing policy, demonstrating that 57% of checked advertisements offered no actual price reduction [1]. Furthermore, the investigation showed that 19% of advertisements presented a lower discount than originally announced [1].
Manipulative Marketing Tactics
The investigation brought to light that Shein systematically increased prices before applying discounts, thereby misleading consumers about actual savings [1]. The authorities discovered that 11% of checked advertisements actually showed price increases instead of genuine discounts [1].
Environmental Efforts Under Scrutiny
Beyond price manipulation, Shein’s environmental efforts were also critically examined, raising broader doubts about the company’s transparency [1]. The DGCCRF found that the company’s environmental claims were equally misleading [1].
Shein’s Response
Shein claimed to have immediately implemented corrective measures and completed them within two months after being informed by the DGCCRF in March 2024 [1]. The company emphasised its commitment to transparency and compliance with French regulations [1].