The fashion market is concerned about this situation as Shein has been fined 1 million euro by the Italian government because of false advertising of its products related to sustainability.

Shein fined by Italy's competition authority, AGCM. In a landmark move that will affect the lifestyle and fashion industry, Italy has fined Shein 1 million euros for making misleading and confusing statements regarding its practices on environmental sustainability. The fine is imposed on Infinite Styles Services, which is responsible for the European activities of Shein, based in Dublin.

According to the investigation of AGCM, sustainability-oriented marketing at Shein, especially of its brand on a line called evoluSHEIN by design, was performed relying on vague or misleading, even false, assertions. The regulator faulted the fast fashion giant with promoting the messages regarding recyclability and carbon reduction that were not consistent with the existing textile technologies or recycling systems.

And the pressures that businesses, specifically the lifestyle and fashion industry, are facing to support green claims are increasingly bearing their fruit, with Shein promising a 25% reduction in emitted greenhouse gasses by 2030 and by 2050 reaching net-zero, which was found not only to be false but also is not seen as reality in light of emissions that are, in reality increasing both in 2023 and 2024.

It comes after a similar sanction in France where Shein was also fined 40 million euros last month for greenwashing and misleading discounts. With an increasing global presence, Shein is facing greater attention on the issue of ethical practices in lifestyle and fashion.

Although Shein claims to have internal compliance and transparency on its site, both regulators and consumers are skeptical.