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Fast-Fashion Giant Shein Hit with Record Fine in France Over Consumer Deception

By  |  July 3, 2025

French authorities have imposed a €40 million ($47.17 million) fine on fast-fashion retailer Shein for what they described as deceptive marketing tactics, including false discounting and unsubstantiated environmental claims. The penalty was levied against Infinite Style E-Commerce Co. Ltd. (ISEL), the entity responsible for Shein’s French operations, following an extensive inquiry by the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF).

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    According to a statement released by the DGCCRF, the investigation uncovered systemic practices designed to mislead consumers about the value of Shein’s promotions. These tactics included artificially inflating “original” prices prior to marking them down and failing to account for previous discounts when setting reference prices. Per the DGCCRF, such methods created a distorted perception of savings for customers browsing the platform.

    The watchdog’s examination covered a broad range of listings on Shein’s website between October 2022 and August 2023. During that period, over half of the sampled promotions (57%) offered no genuine discount, while 19% overstated the advertised savings. Another 11% were found to represent actual price increases masquerading as deals, according to a statement from the consumer agency.

    Related: Shein Warns of Higher Costs for French Shoppers Amid EU Fee Proposal

    In addition to pricing concerns, the DGCCRF scrutinized Shein’s sustainability marketing. The agency concluded that the retailer had presented vague and unverifiable environmental claims, overstating its commitment to eco-friendly practices without supplying adequate proof.

    The fine, which ranks among the largest of its kind in France, was finalized through a settlement procedure authorized by the Paris public prosecutor’s office. It underscores growing regulatory pressure on fast-fashion companies to adhere to consumer protection and transparency standards.

    Shein responded by confirming it had been notified by the DGCCRF in March 2024. The company said it addressed the issues within two months and emphasized that it takes its legal obligations seriously. “All the issues raised were resolved over a year ago,” Shein stated. The company also clarified that these changes did not result in higher prices for shoppers.

    Source: Fashion Network