Shein's €40 Million Revelation: How a Retail Giant Was Caught in False Discount Practices
Parijs, vrijdag, 4 juli 2025.
The French regulatory authority DGCCRF unveiled shocking retail practices at Shein, where 57% of monitored advertisements showed no price reduction. The investigation, which examined thousands of products between October 2022 and August 2023, revealed systematic deception: some products were first price-increased before applying discounts, with 19% offering less discount than promised and 11% representing an actual price hike. This revelation resulted in a record fine of €40 million, exposing the misleading marketing strategies of the Chinese fast fashion giant and sending a clear signal about consumer protection in the retail sector.
Shein’s Misleading Discount Practices
The French regulatory authority DGCCRF conducted a thorough investigation into Shein’s sales practices, revealing that 57 percent of monitored advertisements showed no actual price reduction [1][2]. The investigation, which examined thousands of products between October 2022 and August 2023, uncovered systematic deception in the company’s pricing strategies [3].
Detailed Findings of the Investigation
The regulator discovered that Shein employed various misleading tactics, including raising prices prior to applying discounts. Of the products examined, 19 percent had a lower discount than advertised, while 11 percent even represented an actual price increase [1][4].
Consequences for Shein
As a result of these misleading practices, Shein was fined a record amount of €40 million, the highest ever for such violations in France [2][5]. The Chinese company claims to have taken the necessary corrective measures within two months of the notification in March 2024 [3].
Broader Implications
The investigation not only concerns price misrepresentation but also misleading environmental claims, raising further concerns about Shein’s transparency [1][4]. The case emphasises the importance of consumer protection in the rapidly evolving e-commerce market [GPT].