France’s antitrust regulator has fined fast-fashion giant Shein €40 million ($47.17 million) for deceptive commercial practices related to misleading discounts offered on its platform. The penalty follows a nearly year-long investigation into how Shein presented pricing on its French website.
According to the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF), Shein’s European sales handler, Infinite Style E-Commerce Co Ltd (ISEL), failed to comply with French pricing laws that require any advertised discount to reflect the lowest price offered over the prior 30 days. Instead, Shein often disregarded prior discounts and, in some cases, even increased prices before applying supposed markdowns.
The investigation, which analyzed thousands of products listed between October 1, 2022, and August 31, 2023, found that:
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57% of the “discounts” did not actually reduce the price,
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19% offered smaller savings than advertised,
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11% were actually price increases disguised as deals.
The regulator concluded that Shein had misled consumers about the authenticity of its promotional offers, violating both consumer trust and legal standards.
In response, Shein stated that it was notified of the violations in March 2023 and took corrective action within two months. The company emphasized that “all identified issues were addressed more than a year ago” and reaffirmed its commitment to full compliance with French regulations.
This fine adds to growing scrutiny of Shein across Europe and other markets, where regulators are focusing not just on pricing practices but also on environmental impact and labor transparency.