Fast fashion faces heat as EU tightens sustainability oversight

In a move that signals increasing regulatory scrutiny over sustainability claims in fast fashion, Italy’s antitrust authority AGCM has fined Chinese ecommerce giant Shein USD 1.16 million for misleading environmental messaging.
The penalty was imposed on Infinite Styles Service, the Dublin-based operator of Shein’s European platform, after an investigation launched in September 2024. At the heart of the probe was Shein’s ‘evoluSHEIN by design’ collection, which was marketed as sustainable and recyclable.

The AGCM found that the collection used materials that are neither environmentally sustainable nor recyclable under current systems. The regulator flagged Shein’s claims as “vague and generic,” concluding they painted an inaccurate picture of the brand’s environmental responsibility in violation of the EU’s anti greenwashing rules, enforced from 2024.

The ruling also called out the disconnect between Shein’s public pledges including a 25 per cent reduction in greenhouse gas emissions by 2030 and net zero by 2050 and its actual emissions trajectory, which rose in both 2023 and 2024, based on available reports.

The AGCM noted that Shein, given its dominant presence in ultra-fast fashion, bears greater responsibility in aligning marketing with verified sustainability practices. Misleading consumers on green credentials not only breaches consumer trust but also violates evolving EU consumer protection frameworks.

This development comes on the heels of a USD 46.5 million fine imposed by France’s regulator in July for similar violations, indicating that Shein is now under the scanner across key European markets.

In response, Shein stated that it “respects the decision” and remains committed to working transparently with regulators. However, the ruling underscores the urgent need for greater corporate accountability in the fashion sector, especially as EU regulators adopt a more aggressive stance on greenwashing.

While the USD 1.16 million fine may not materially dent Shein’s financials, it could trigger tighter audits of environmental claims across the industry and push brands to move beyond token sustainability statements toward measurable impact.