In August 2025, the Italian Competition Authority (AGCM) imposed a €1 million (≈ $1.15 million) fine on Infinite Styles Services Co Ltd, a Dublin based company that operates Shein’s website in Europe, for greenwashing — making misleading and vague environmental claims about its clothing products. Shein, a well known brand in the fast fashion sector, received this fine for misleading environmental claims. This fine follows a €40 million penalty from France’s consumer authority earlier this year over deceptive discounting and environmental claims.

This marks yet another blow to Shein’s credibility in Europe as regulators, including the European Commission, tighten oversight of sustainability messaging in the fashion sector under frameworks such as the Digital Services Act, reflecting increasing scrutiny of environmental claims.

What Triggered the Fine: Misleading Environmental Messaging

AGCM launched its investigation in September 2024 amid rising consumer demand for sustainable fashion. The investigation was triggered by concerns raised about misleading environmental claims and the misleading communication strategy used by Shein.

Regulators found that the company disseminated environmental claims in a vague and generic way, with many instances vague generic and others misleading or omissive, which contributed to consumer confusion about the true sustainability of Shein’s products. The probe focused on three key areas of Shein’s website and campaigns: #SHEINTHEKNOW, evoluSHEIN, and Social Responsibility.

Key findings:

• Circular system claims lacked evidence — Shein’s statement that products were fully recyclable was false and did not reflect reality, as there was no proof, certification, or clear explanation of recycling processes.
• EvoluSHEIN green fiber marketing was vague — Environmental benefits were described in an emphatic and in others misleading way, with claims about product circularity and the evoluSHEIN by Design collection lacking evidence. Marketing implied benefits for the entire product life, but these claims were not substantiated.
• Tiny sustainable range portrayed as major — The eco-line was portrayed as solely responsible for Shein’s sustainability efforts, which did not reflect reality, as it represented only a fraction of Shein’s catalogue, yet marketing suggested it was a core offering.
• Climate targets lacked substance — Pledges to cut GHG emissions by 25% by 2030 and achieve net-zero by 2050 were not supported by a transparent roadmap or third-party verification.

This mirrors other recent rulings, such as the UK Competition and Markets Authority actions against ASOS and Boohoo for similar overstated sustainability claims.

Shein’s Emissions Trajectory: Data Shows Growth, Not Reduction

Shein’s own disclosures and independent analyses suggest its environmental footprint is expanding, not shrinking. Shein’s stated intention to reduce greenhouse gas emissions and achieve zero emissions by 2050 is contradicted by the actual increase in shein's greenhouse gas emissions. Despite public commitments, the company’s emissions data shows an actual increase rather than progress toward its stated goals:

This rapid increase is depicted in the bar chart below:

[Graph 1: Shein’s Emissions Growth (2022-2024)]

Over 90% of these emissions are Scope 3, generated by suppliers, textile production, dyeing, transportation, and logistics. The majority of these emissions originate from supply chains, which remain a key challenge for Shein as it attempts to reduce greenhouse gas emissions. Shein’s heavy reliance on air freight and dominant use of polyester (76% of materials, with only 6% recycled) compound its environmental toll. Polyester’s production is energy-intensive, and its microfibers pollute oceans with every wash.

• Polyester: 76%
• Recycled materials: 6%
• Other materials: 18%

Breakdown of Shein’s Carbon Emissions by Scope

• Scope 3 (suppliers, textile production, logistics): 90%+
• Scope 1 & 2: Less than 10%

Why Greenwashing Matters: The Global Fashion Footprint

The fashion industry is responsible for 8% of global greenhouse gas emissions. Over 85% of textiles end up in landfills annually, with minimal recycling infrastructure to recover fibers. Polyester’s microplastic pollution threatens marine ecosystems and food chains.

Fashion brands are under increasing pressure to demonstrate environmental sustainability and ensure the security of consumer trust in their claims, as misleading or unverified environmental messages can undermine confidence in their environmental responsibility.

• 8% global GHG emissions
• 85%+ textiles to landfill
• Significant polyester microplastic pollution

Regulatory Crackdown: Europe’s War on Greenwashing

Italy’s fine is part of a wider European crackdown on misleading green claims or greenwashing. The regulatory action was prompted by company disseminated environmental claims that were often misleading or omissive, false, or exaggerated, especially regarding product circularity. The upcoming EU Green Claims Directive will require companies to back sustainability statements with verifiable scientific evidence, avoid vague language, and disclose full lifecycle impacts.

Similar enforcement has targeted H&M in Norway and Decathlon in the Netherlands.

Shein’s Future: Balancing Growth with Accountability

Shein claims its net-zero 2050 target is validated by the Science Based Targets initiative and says it is working on improving supplier engagement, emissions tracking, and product traceability. The company also aims to lead consumers toward more sustainable choices, but the rise of activism in the fashion industry continues to pressure Shein to address its environmental impact. However, critics argue that Shein’s ultra-fast fashion model — introducing up to 10,000 new items daily — is fundamentally at odds with circular economy principles.

Bottom Line

Italy’s €1 million fine against Shein signals the end of unchecked greenwashing. Only brands that align growth with science-backed sustainability commitments will thrive. Shein and similar companies must shift from marketing-driven green branding to transparent environmental performance.

FAQ's

1. Why did Italy fine Shein €1 million for greenwashing?

Italy’s competition authority (AGCM) fined Shein €1M in August 2025 for misleading sustainability claims. Investigators found the company used vague, overly emphatic, or misleading communication strategies about recycling systems, sustainable materials, and its eco-lines, which misled consumers about Shein’s actual environmental impact.

2. What misleading sustainability claims & misleading environmental claims did Shein make?

Shein promoted environmental claims such as full product recyclability, use of green fibers, and net-zero pledges without sufficient evidence. Many claims were generic and omitted key details, creating confusion about the characteristics and environmental impact of Shein-branded clothing.

3. How did Shein’s internal review processes fail?

The Italian authority noted that Shein’s internal review processes did not prevent misleading or omissive claims. While Shein later stated it had strengthened its review processes and improved oversight, the AGCM found that existing checks were inadequate to ensure environmental claims were clear and accurate.

4. What role did Shein’s communication strategy play in the fine?

The fine was largely due to Shein’s misleading communication strategy regarding sustainability. Marketing campaigns overstated the impact of eco-lines like evoluSHEIN, presented a tiny sustainable range as core to its business, and used overly emphatic wording that exaggerated environmental benefits.

5. How does Shein’s recycling system claim mislead consumers?

Shein stated its clothing products were part of circular systems and fully recyclable. However, the AGCM found no evidence to support these claims, especially since current recycling systems are limited and cannot recover most textiles. This created false or at least misleading impressions about product recyclability.

6. How did Shein respond to the Italian Competition Authority’s ruling?

Shein cooperated fully with regulators and took immediate action after the fine. The company said it strengthened internal review processes, revised its informational online pages, and committed to making environmental claims more transparent and specific.

7. Is this Shein’s first greenwashing fine in Europe?

No. Earlier in 2025, Shein was fined €40 million in France for deceptive discounting and misleading sustainability claims. Italy is the second European country to impose penalties for Shein’s environmental marketing, showing an ongoing crackdown across Europe.

8. Why are regulators targeting Shein greenwashing italy environmental claims?

The Italian authority and other regulators argue that Shein’s vague or misleading environmental messaging undermines consumer trust. Environmental claims must reflect the full life cycle of products, avoid generic statements, and be backed by scientific evidence—standards Shein failed to meet.

9. How did Shein respond to the AGCM ruling in Italy?

Shein said it strengthened its internal review processes and took immediate action to address misleading claims, updating its strategy regarding the characteristics and environmental impact of its products.

10. Why is this fine significant for the e-commerce sector?

The case highlights how regulators are cracking down on misleading environmental claims in e-commerce. Companies must ensure their shared environmental claims are transparent, verifiable, and not misleading.