Italy’s antitrust agency has launched an investigation into a Dublin-based company that manages the Italian website of online clothing retailer Shein over possible misleading environmental claims on the site.
The investigation targets Infinite Styles Services CO. Limited and accuses the company of trying “to convey an image of production and commercial sustainability of its garments through generic, vague, confusing and/or misleading environmental claims,” Italy’s antitrust authority said in a statement.
Infinite Styles Services, which operates Shein websites and mobile applications, and through which Shein does business in Europe, could not immediately be reached for comment. Shein did not immediately respond to a request for comment.
The Italian authority said that some of the information on the clothing collection ‘evoluSHEIN’, declared to be sustainable, could mislead consumers about the amount of “green” fibres used, while also failing to inform them about the fact the garments cannot be further recycled.
It also said that Shein’s website appears to emphasise a commitment to decarbonisation, which seems to be contradicted by the increase in greenhouse gas emissions shown in Shein’s sustainability reports for 2022 and 2023.
Founded in China, Shein is known for its cheap tops and dresses. Its treatment of workers and environmental record have come under increased scrutiny following reports that it could list its shares in London.
Under European Union anti-greenwashing regulations that came into force this year and will apply in all member states in two years’ time, companies are banned from making vague environmental claims about their products, like labelling them “energy efficient” or “environmentally friendly” if they don’t provide evidence to back them up.
Italy’s antitrust body, in addition to dealing with competition issues, is also in charge of consumer protection. It has recently opened investigations into online search giant Google and luxury brands Armani and Dior.
Under Italian legislation, companies found in breach of consumer rights rules face fines ranging from 5,000 euros to 10 million euros ($5,590-$11.2 million).
Shein has its Europe, Middle East and Africa headquarters in Dublin. Its global headquarters are in Singapore.
(Reuters)