Chinese fast fashion platform Shein has been hit by French regulators, with a fine of 40 million euros for misleading commercial practices. The decision came after almost a year of investigations by the French competition and anti-fraud agency (DGCCRF), with the approval of the Paris prosecutor's office.
According to the DGCCRF report, Shein is accused of price manipulation, creating the illusion of excessively large discounts. As it was found, in several cases the initial prices had been artificially increased, so that the subsequent “discounts” would appear more impressive.
See also: EU: Complaint against Shein for misleading practices
Specifically, 11% of the alleged “discounts” were actually price increases, while 57% of the advertised offers did not include any actual reduction. Furthermore, in 1 in 5 cases, the reduction was significantly less than advertised.
Shein accepted the fine without raising any objection.
Regulators emphasize that the practice of “permanent offers” gives consumers a false sense of opportunity, artificially boosting demand and undermining trust in the digital marketplace.
See also: Shein increases safety checks on its products
Shein: Rapid growth in France
Since entering the French market in 2015, Shein has managed to capture a significant share of the fashion space. According to recent data, in 2023 the Chinese fast fashion platform increased its share of the domestic clothing and footwear market to 3%, compared to 2% in 2021 – a remarkable performance by industry standards.
However, its explosive rise has been accompanied by intense public and institutional criticism. Shein has emerged as a symbol of the dark side of so-called ultra-fast fashion, with accusations focusing on environmental pollution, unfair competition practices, and concerns about working conditions in the production chain.
Responding to the accusations, the company stated through the AFP that it responded immediately to the findings of the DGCCRF investigation, taking corrective action within two months of the official notification it received in March 2024.
See also: Complaints against TikTok, SHEIN, Temu for GDPR violation (also in Greece)
Shein stressed that it takes its legal and regulatory obligations in France “very seriously,” reaffirming its commitment to transparency.
Last month, Shein was also accused by consumer protection organizations from 21 countries, who filed an official complaint with the European Commission, accusing the Chinese company of misleading and abusive practices that negatively affect users. According to the report, Shein uses techniques — such as fake timers, limited stock notifications, and push-to-buy — to increase consumer pressure.
At the same time, serious concerns are being raised about the safety of the products that Shein sells in the EU. BEUC is talking about the sale of clothing and accessories that may not meet European safety standards.
Source: Reuters
