France’s consumer protection authority has fined fast-fashion giant Shein €40 million ($47.17 million) for deceptive commercial practices, including misleading promotional pricing and exaggerated environmental claims. The penalty follows a months-long investigation by the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF), under France’s Ministry of Economy. The fine was issued to Infinite Style E-Commerce Co. Ltd. (ISEL), the company handling Shein’s operations in France.

According to the DGCCRF, ISEL misled consumers by manipulating pricing displays to exaggerate the value of its offers. Investigators found that the company often inflated original prices before applying so-called discounts or ignored previous promotions when setting reference prices.

As a result, shoppers were frequently presented with crossed-out prices and continuous markdowns that created the illusion of savings—when in many cases, there were none.

Between October 2022 and August 2023, the DGCCRF reviewed thousands of product listings on Shein’s website. Its findings showed that 57% of the verified promotions offered no real price reduction. Another 19% advertised greater discounts than were actually applied, while 11% turned out to be disguised price increases.

The investigation also targeted Shein’s environmental marketing. The DGCCRF found that the company overstated its sustainability efforts and used vague claims about eco-conscious practices without substantiating them.

The €40 million fine was finalized through a settlement process, approved by the Paris public prosecutor’s office. It marks one of the highest financial penalties of its kind in France.

In a statement, Shein said it had received notice from the DGCCRF in March 2024 and had implemented corrective actions within two months.

“All the issues raised were resolved over a year ago,” the company said. “ISEL takes its legal and regulatory obligations in France very seriously.”

Shein added that these changes did not impact final prices for consumers and reaffirmed its commitment to transparency and legal compliance.

The DGCCRF noted that it will continue to monitor Shein’s business practices to ensure ongoing compliance and safeguard consumer interests.

($1 = 0.8480 euros)

Paris, July 3, 2025 (AFP)