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Italy probes Revolut over alleged unfair practices in investment services

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Italy’s competition authority (AGCM) has launched an investigation into British fintech giant Revolut, focusing on allegations of unfair commercial practices related to its investment and banking services. The watchdog claims Revolut misled users by promoting zero-commission investments without clearly disclosing additional costs and limitations.

According to AGCM, Revolut failed to inform customers that its zero-fee products involve fractional shares, which differ significantly from whole stocks in voting and transfer rights. The regulator also highlighted that Revolut did not clearly warn crypto asset investors that stop-loss and take-profit settings—tools typically used to manage investment risks—could not be modified.

AGCM further accused Revolut of adopting an aggressive stance by suspending and blocking financial accounts without sufficient notice or assistance, restricting customer access to cash and related services for prolonged periods.

Inspections were carried out at Revolut Bank UAB’s Italian offices by AGCM and Italy’s finance police. Revolut said it is fully cooperating with the probe and remains committed to compliance and customer protection but declined to comment on specific details as the investigation is ongoing.

Revolut, valued at $45 billion last year, is one of the most successful European digital-only fintechs. The company aims to expand into mortgages and consumer lending to compete with traditional banks and grow its presence in the U.S.

Under Italian law, violations of consumer rights can result in fines ranging from €5,000 to €10 million.

France Fines Shein €40 Million for Misleading Discounts on Fast Fashion Platform

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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:

  • 57% of the “discounts” did not actually reduce the price,

  • 19% offered smaller savings than advertised,

  • 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.

Italy Probes Chinese AI Firm DeepSeek Over Misinformation Risks

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Italy’s antitrust and consumer protection agency AGCM announced Monday it has launched a formal investigation into Chinese artificial intelligence startup DeepSeek, alleging the company failed to clearly warn users about the potential for its chatbot to generate false or misleading information.

The regulator stated that DeepSeek’s platform does not provide “sufficiently clear, immediate and intelligible” alerts about the risk of AI-generated “hallucinations” — a term used in the AI field to describe instances when models produce inaccurate or completely fabricated information in response to user prompts.

AGCM is focusing on the consumer rights aspect, emphasizing the risk users might unknowingly rely on erroneous AI outputs due to insufficient warning or transparency.

DeepSeek did not immediately respond to requests for comment on the investigation.

This marks the second run-in DeepSeek has had with Italian authorities this year. In February, the country’s data protection regulator ordered the startup to suspend access to its chatbot within Italy after the company failed to resolve concerns related to its privacy policy.

The probe highlights increasing regulatory scrutiny over generative AI models in Europe, particularly regarding transparency, data protection, and consumer rights.