France has fined e-retailer Shein €40 million for "deceptive commercial practices", following a nearly year-long investigation by the country's competition and anti-fraud agency, DGCCRF. The probe revealed that Shein misled consumers with false price reductions and exaggerated claims about its environmental impact.
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The DGCCRF found that Shein often inflated prices before applying discounts, giving shoppers a false sense of savings. Of the discounts reviewed, 11% were actually price increases, 57% offered no real reduction, and 19% delivered smaller discounts than advertised.
The company, which entered the French market in 2015, has rapidly gained market share and now holds three percent of the domestic clothing and footwear sector. However, it has also come under scrutiny for contributing to environmental degradation and promoting exploitative labour practices.
Shein accepted the fine and said it had already taken "corrective action" within two months of being notified of the probe. The company also stated it was committed to transparency and compliance with French regulations.
Source: www.france24.com