Dive Brief:
- Shein is under investigation by the Italian Competition Authority for greenwashing claims, according to a press release last week.
- The investigation targets Dublin-based Infinite Styles Services Co., which manages Shein’s website in Italy. It claims the fast fashion giant potentially misled consumers with environmental claims, and specifically focuses on the “#SHEINTHEKNOW,” “evoluSHEIN” and social responsibility sections of Shein’s website.
- Shein is ready to cooperate openly with Italy’s government to address the inquiry, a company spokesperson said in an email to ESG Dive’s sister publication Fashion Dive.
Dive Insight:
The Italian Competition Authority, which goes by the acronym AGCM, said that given consumers’ increased interest in the impact of their consumption choices on the environment, Shein could try to create an image of sustainability through generic, vague and misleading environmental claims regarding circularity. In addition, the AGCM noted the environmental impact of fast fashion as a whole.
AGCM also pointed to Infinite Styles Services’ emphasis on its commitment to decarbonization, and noted that this objective appeared to be contradictory to the increase in greenhouse gas emissions reported in Shein’s sustainability reports in 2022 and 2023.
A Shein spokesperson said the company took the investigation as an opportunity to reaffirm its commitment to complying with laws and regulations in the markets it operates in as well as maintaining transparency with its customers.
Shein’s business model, which aims to create items quickly and cheaply to keep up with consumer demand, has frequently been questioned for its environmental impact and labor practices. In July, it announced it would invest 200 million euros, or about $221 million at current exchange rates, into startups in Europe that are working in textile-to-textile recycled materials innovation and related fields.
Other large fashion and apparel brands have also been accused of greenwashing over the past few years.
In February, an advocacy organization asked Canada’s competition bureau to investigate the conduct of Lululemon over alleged false and misleading statements in its “Be Planet” marketing campaign. Meanwhile, Nike was sued in May 2023 for “falsely and misleadingly” marketing products as sustainable and environmentally friendly.
