The Antitrust has started an investigationinvestigation against Shein for possible misleading advertising. The Authority made this known by explaining that «the promotional messages on the Italian website shein.com regarding the environmental sustainability of Shein-branded clothing items could be misleading/omitted». The Competition and Market Authority – as stated in the note – «has started an investigation against Infinite Styles Services CO. Limited based in Dublin, which manages the Italian website of Shein, for the possible misleading nature of some environmental statements contained in the sections «#SHEINTHEKNOW», «evoluSHEIN» and “Social Responsibility» of the shein.com website».
According to the Authority, “in light of the growing awareness of consumers regarding the impact of their consumption choices on the environmentthe company would try to convey an image of productive and commercial sustainability of its clothing through generic environmental claims, vague, confusing and/or misleading on the subject of “circularity” and product quality and their responsible consumption. Even some information on “evoluSHEIN”, the clothing collection declared “sustainable” by the company, could mislead consumers regarding the quantity of “green” fibers used, also omitting to inform them on the non-further recyclability of the clothing items.
Also Infinite Styles Services CO. Limited ewould generally emphasize the commitment also within the process of decarbonization of its activitieswhile the objectives indicated on the website would appear to be contradicted by the significant increase in greenhouse gas emissions indicated in Shein’s sustainability reports for 2022 and 2023. In the opening of the investigation, the Authority hypothesizes that the company would adopt communication strategies with misleading/omission features regarding sustainability, also considering the environmental impact of its sector of activity, that of the so-called “fast or super fast fashion”.
Assoutenti, if wrongdoing confirmed, Shein will compensate users
If the wrongdoing and irregularities are confirmed, Shein will have to compensate all Italian consumers who were pushed to make purchases based on the misleading messages spread by the company. This is stated by Assoutenti, which will present a formal request to participate in the investigation opened by the Antitrust Authority against Infinite Styles Services based in Dublin, which manages the Italian website of Shein, for the possible misleading nature of some environmental claims. “In terms of misleading advertising, sanctions against companies are no longer enough, and direct compensation is needed for the citizens involved and damaged by unfair practices – explains the president Gabriele Meluso – The consumer who has been induced to purchase by false and misleading environmental messages has the right to obtain a refund of the amount paid, considering that his economic choice was influenced by untrue commercial information. For this reason, if the Antitrust investigation ends with a sanction, we are ready to take action to protect the rights of all Italian consumers who have made purchases on the platform” – concludes Melluso.
Fashion Federation, valorising proximity
“Promote proximity stores and the quality of fashion products”. This is what Federazione Moda Italia-Confcommercio emphasizes, commenting on the news of the start of an investigation by the Antitrust against the manager of the Italian website of Shein, for the possible misleading nature of some environmental statements contained online. And it draws attention to the “theme of triple E sustainability: Economic, Ecological and Ethical-social”.
For Giulio Felloni, president of the Italian Fashion Federation-Confcommercio: “The topic of sustainability is deeply felt by the fashion, clothing, footwear, leather goods, accessories, home textiles and sporting goods stores that we represent. For this reason we must all work together, institutions and the fashion supply chain, on the valorization of local trade that represents a point of reference of transparency and trust for the customers. The choices of the products that our stores put on sale respond to evaluations of the suppliers, on the respect of the adoption of the national collective labor agreement, on the quality and healthiness of the workplace and on the raw materials used”.
To these variables, the president of Federazione Moda Italia-Confcommercio continues his reflection, «we must add the quality and professional services that we give to our customers. However, the competition from those web giants that, although operating in the same market, do not follow the same rules, is very worrying. causing devastating effects on retail as the data clearly shows. We have lost 5,080 fashion stores in the last year in Italy with almost 10,000 people looking for new jobs”.
As Federazione Moda Italia-Confcommercio, Felloni continues, “we are working on several fronts, both at a national and territorial level, to restore confidence in businesses and to spread the economic and social value of our local shops. In recent days – he continues – we have also had the opportunity to report in the Senate, to the IX Commission on Industry, Commerce, Tourism, Agriculture and agri-food production, the problems of our category and to bring attention back to the fashion supply chain that links production to consumption. We have highlighted, in this sense, the fundamental role of neighborhood shops as the driving force of the economy and our cities reiterating here too the emergency and therefore the urgency of interventions in favor of the fashion trade as represented to the Minister of Enterprise and Made in Italy on the occasion of the last Fashion Table. After the entry into force of the Global Minimum Tax and the new Consumer Code that regulates online sales for the first time. It is necessary to continue, alongside Confcommercio, with targeted actions to protect the principle of ‘same market, same rules’ and also work for the abolition of the 150 euro limit threshold for European customs duties”.
Codacons, if Shein is greenwashing, maximum severity is needed
Maximum severity against false environmental advertising by companies. This is what Codacons states, commenting on the investigation opened by the Antitrust against Shein for possible misleading advertising on the environmental sustainability of clothing. The association for the defense of users recalls that it has long denounced the practice of companies to resort to “green claims” in their marketing strategies and commercial communications to the public. Messages, explains Codacons, are not always correct and often result in the phenomenon of the so-called “Greenwashing”, that is, a facade of environmentalism based on untrue statements regarding the sustainability and respect for the environment of products and production activities. Such practices, it further emphasizes, are capable of diverting the choices of consumers, increasingly attentive to sustainable and environmentally friendly purchases, and alter the market, diverting hundreds of millions of euros each year in terms of purchases of commercial products. “For this reason, the Antitrust investigation takes on enormous importance and, if illicit and irregularities are confirmed, we expect an exemplary sanction against the giant Shein” concludes Codacons. Adoc also welcomes the investigation launched by the Antitrust with the president Anna Rea who asks for greater attention and in-depth investigations into the numerous cases reported, which concern both misleading advertising practices and worrying risks to public health. The case of Shein, she underlines, is that of a company whose economic success “often seems to be based on commercial policies, which exploit communication strategies on greenwashing and the vulnerability of consumers, many of whom are teenagers”. According to Rea this raises important ethical questions and requires urgent intervention to protect the health and rights of people.