A Warning For Ecommerce Manufacturers 

It’s truthful to say that Shein doesn’t have probably the most beneficial popularity in the case of sustainability. And the Italian Competitors Authority (AGCM) has determined to take motion. 

The AGCM lately fined the quick style big €1m for making “deceptive” environmental claims about its merchandise on its web site, also referred to as greenwashing. 

New legal guidelines on greenwashing lately got here into power within the UK this yr. Alongside Shein’s high quality, it’s a stark reminder for ecommerce companies to face by sustainable firm values, or danger each authorized and reputational injury.

Why was Shein fined for greenwashing?

Earlier this month, the AGCM fined Shein for €1m (roughly £863,400) following accusations of greenwashing via deceptive promoting claims round sustainability.

In keeping with the AGCM, the quick style big publicised environmental claims that had been imprecise, generic, or deceptive. The AGCM additionally argued that sections of the Shein web site made false or complicated statements in regards to the recyclability of its merchandise. 

Moreover, the AGCM stated that claims of its use of “inexperienced” fibres to advertise its evoluSHEIN by Design line didn’t specify the environmental advantages of those merchandise all through their life cycle, nor said that the road solely represented a part of Shein’s providing.

The AGCM additionally identified that Shein’s said targets to scale back greenhouse fuel emissions by 25% by 2030 contradicted its improve in emissions between 2023 and 2024.

As reported by ESG At present, a Shein spokesperson responded to the high quality: “We have now strengthened our inside evaluation processes and improved our web site to make sure that all environmental claims are clear, verifiable, and compliant with rules.”

What’s greenwashing?

Greenwashing is a follow the place a enterprise will deceptively use inexperienced advertising to misrepresent its merchandise, providers, or insurance policies to seem extra eco-friendly than they’re.

This sometimes includes utilizing imprecise or exaggerated language relating to environmental impression — akin to “eco-friendly”, “sustainable”, or “inexperienced” — with out concrete proof.

It’s a very pertinent concern inside the style business. The sector is reported to be the third largest polluter globally, with roughly 35% of all major microplastic air pollution within the ocean coming from quick style producers particularly.

Customers are taking discover of this, too, with extra changing into eco-conscious within the final yr. In keeping with analysis by Rufina Designs, 80% of UK shoppers are prepared to pay extra for items which might be sustainably produced or sourced. 

How can on-line shops keep away from greenwashing?

Shein’s penalty from AGCM is likely one of the largest fines that corporations can obtain for making deceptive claims in promoting. SMEs are unlikely to face the identical degree of high quality in the event that they interact in greenwashing, however there are nonetheless dangers – and never simply to buyer belief.

As of April 2025, underneath the Digital Markets, Competitors and Shoppers Act 2024 (DMCCA), the UK Competitors and Markets Authority (CMA) can high quality corporations up to 10% of their turnover in the event that they breach shopper legislation – together with by greenwashing. 

Greenwashing isn’t at all times intentional. One thing so simple as a miscommunication in advertising brainstorms can result in an unclear message that spirals into greenwashing.

Manufacturers ought to make sure that to keep away from imprecise language that doesn’t correctly clarify your practices. As a substitute, use particular examples of instances when your small business genuinely made a optimistic impression on the surroundings, like the share of waste discount applied, so that you’ve proof in your advertising communications.

You must also set lifelike targets and be trustworthy together with your clients about your progress in reaching them, akin to via common reviews. 

Lastly, don’t neglect your provide chain. Be sure to correctly analysis the suppliers you’re working with, together with their carbon emissions or waste administration course of. 

Greenwashing has severe penalties, and it might land you in authorized and monetary sizzling water, whether or not it’s achieved deliberately or by mistake. So, whereas it may be tempting to current your self as an eco-brand, ensure you have a powerful and credible case for doing so.