Italian Competition Authority v. Infinite Styles Services Co. Ltd (SHEIN)

On September 23, 2024, the Italian Competition Authority (AGCM) opened proceedings PS12709 against Infinite Styles Services Co. Ltd, the Irish company that operates the SHEIN online stores in Europe, concerning environmental claims disseminated on the Italian SHEIN website and related web pages since at least 2023. The claims concerned the circularity of production, product quality, and responsible consumption (the #SHEINTHEKNOW, evoluSHEIN and "Social Responsibility" sections), the share of recycled materials in the "evoluSHEIN by Design" collection, and the company's decarbonization targets: a 25% reduction of greenhouse gas emissions (Scope 1, 2 and 3) by 2030 and net-zero emissions by 2050. In its decision of July 29, 2025, the Authority found the claims vague, generic, false or misleading, and lacking relevant information.

With regard to the climate targets, the Authority noted that, by the company's own account, more than 99% of its emissions fall under Scope 3 and are generated by suppliers, transportation and other sources outside its direct control, and that its total greenhouse gas emissions rose from 6.04 million tonnes of CO2 in 2021 to 9.17 million in 2022 and 16.68 million in 2023, an 82% increase over 2022. It concluded that presenting a real and effective decarbonization commitment was confusing and misleading. The Authority held that the conduct constituted an unfair commercial practice under Articles 20, 21(1)(b), and 22(1)-(2) of the Consumer Code, prohibited its continuation, imposed an administrative fine of EUR 1,000,000, and ordered the company to report on the measures taken within 90 days.