Shein Fined by France for Deceptive Discounts
France's antitrust agency has fined fast-fashion giant Shein 40 million euros for allegedly misleading customers with deceptive discount practices. The probe revealed that over half of the advertised discounts on Shein's website were not genuine, prompting the company to take corrective actions and accept the fine.
In a significant regulatory move, France's antitrust agency has slapped a 40 million euro fine on Chinese-founded fast-fashion retailer Shein. The fine, equivalent to $47.17 million, follows allegations of deceptive business practices, particularly in the realm of misleading discounts offered to consumers.
The investigation, lasting nearly a year, spotlighted that Infinite Style E-Commerce Co Ltd, the entity behind Shein's sales, had violated discount rules. According to French regulations, any discount's reference price should be the lowest price within the 30 days before the offer; however, Shein failed to adhere to this standard.
The exhaustive probe discovered that a striking 57% of the deals on Shein's French website did not represent a lower price, while 19% offered lesser discounts than advertised, and 11% were actual price hikes. In response, Shein asserted that corrective measures had been implemented more than a year ago, demonstrating a commitment to regulatory compliance.
(With inputs from agencies.)
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