SHEIN: The End of “So-Called Great Deals”
The penalty matches the severity of the offenses found. The Chinese ultra-fast-fashion giant Shein has just been slapped with a €40 million fine by the Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF). The charge ? Misleading commercial practices related to the discounts displayed on its French website and unfounded environmental claims. This unprecedented decision shines a harsh light on the flaws of a business model built on excess and rock-bottom prices.
The investigation, carried out between October 2022 and August 2023, put several thousand online products under the microscope. The findings are damning: in 57 % of cases, no real price drop was applied despite promotional claims. Worse still, 19 % of discounts were smaller than those advertised, and 11 % were in fact price increases. These practices gave consumers the illusion of scoring exceptional bargains, when in reality the reference prices had simply been manipulated.
As a reminder, French regulations require that the reference price correspond to the lowest price applied during the 30 days preceding the promotion. A principle that Shein clearly ignored, despite public statements professing a commitment to compliance.
Beyond the bogus promotions, the DGCCRF also flags unsubstantiated environmental claims. The Chinese giant, which proclaims an ambition to cut its greenhouse-gas emissions by 25%, was unable to demonstrate these goals on the ground. A glaring inconsistency for a company whose model depends on a massive supply of low-priced textiles and ultra-fast production.
Shein maintains it enacted corrective measures “without delay” after being notified by the DGCCRF in March 2024. Yet this case has reopened a broader debate over the regulation of low-cost sales platforms. France, via Commerce Minister Véronique Louwagie, is now considering delisting measures for repeat offenders, even going so far as to remove them from search-engine results.
