Fast-fashion giant Shein has been fined €40m by France’s consumer watchdog for misleading pricing tactics, marking one of the largest penalties imposed under the country’s regulations targeting deceptive online retail practices.
The Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) found that Shein systematically used false reference prices on its French website to exaggerate the size of discounts offered to shoppers.
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The ruling comes amid mounting scrutiny of fast fashion and increasing calls for transparency in online sales.
Misleading discounts uncovered
The DGCCRF investigation revealed that Shein advertised inflated “former” prices to make current offers appear more attractive, contravening European Union rules on honest advertising.
Inspectors found that items were routinely labelled with high crossed-out prices that had never actually been charged, creating a false sense of savings for consumers.
According to the French regulator, these practices distorted competition and misled shoppers looking for affordable clothing deals.
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By GlobalDataFast fashion faces growing regulatory pressure
The record fine against Shein highlights intensifying efforts by European authorities to rein in misleading marketing in the fast-fashion industry.
Regulators across the EU have been tightening rules to protect consumers from false promotions and to curb wasteful consumption patterns associated with ultra-cheap, disposable clothing.
France’s crackdown on deceptive online sales aligns with broader EU strategies to promote sustainable consumption and hold large online retailers accountable for marketing claims.
Shein pledges compliance as criticism mounts
In response to the ruling, Shein stated it was reviewing the decision and committed to working with authorities to improve compliance with local laws.
The company, which has become one of the world’s largest online clothing retailers, faces growing criticism over its environmental impact and labour practices, adding pressure on the brand to demonstrate transparency and responsibility in its business operations.
The fine serves as a warning to other e-commerce players that misleading discount strategies can result in severe penalties as European regulators intensify oversight of online retail.
