Shein under scrutiny: Italy investigates greenwashing allegations

Italy’s antitrust watchdog has opened an investigation into online fast-fashion giant Shein for potentially misleading consumers about its sustainability practices. The investigation, led by the independent competition authority (AGCM), is focused on Infinite Styles Serves Co. Limited, a Dublin-based company that operates under the Shein brand.

Originally founded in China and now headquartered in Singapore, Shein has enjoyed meteoric growth by offering products at ultra-low prices through a business model that responds quickly to real-time demand. But critics say the practice encourages overconsumption and creates environmental waste.

AGCM says Shein’s sustainability claims are misleading and lack transparency. The investigation will examine the retailer’s “evoluShein” collection and examine its stated commitment to decarbonization in the context of rising greenhouse gas emissions. Shein has pledged to fully cooperate with the investigation and be transparent with its customers.

(Based on information from the agency.)