Italy’s competition authority has opened an investigation into a Dublin-based company responsible for the website and app of Asian shopping portal Shein, alleging that misleading claims about environmental protection were made on the fast fashion retailer’s website.
The investigation targets “Infinite Styles Services CO. Limited” and accuses the Shein website of attempting to “convey an image of the production and commercial sustainability of its garments through general, vague, confusing and/or misleading environmental claims,” the Italian antitrust regulator said in a statement.
Shein willing to cooperate
Shein said it is “ready to openly cooperate with the relevant Italian authorities and provide the necessary support and information to respond to any requests.”
The Italian authority explained that some of the information about the “evoluSHEIN” clothing collection, which is presented as sustainable, could mislead consumers about the amount of “green” fabrics used, while also failing to inform them that the garments cannot be resold.
Shein, a company founded in China, is known for its low-cost clothing. The company’s treatment of workers and environmental record have come under increased scrutiny following reports of a possible London stock exchange listing. Shein has its European, Middle Eastern and African headquarters in Dublin. The company’s global headquarters are in Singapore.
The Italian antitrust authority not only deals with competition issues, but is also responsible for consumer protection. Recently, it has launched investigations into online giant Google and luxury brands Armani and Dior. According to Italian law, companies that violate consumer protection rules face fines ranging from 5,000 euros to 10 million euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
