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Shein tightens compliance controls after major fines over privacy, discounts, and greenwashing

Shein, the fast-fashion giant, is overhauling its internal governance after a string of regulatory fines across Europe for data privacy breaches, misleading discounts, and greenwashing, according to company memos, investor letters, and sources familiar with the matter.

In a letter to investors reviewed by Reuters, Executive Chairman Donald Tang said Shein has launched a “Business Integrity Group” to unify compliance, governance, and external affairs functions, while expanding its internal audit capacity to strengthen corporate discipline.

Over the past three months, the company has been fined €150 million ($175 million) in France for data violations, €40 million for deceptive pricing practices, and €1 million in Italy for greenwashing claims. Shein is appealing the largest fine, but faces further scrutiny from an ongoing EU product safety investigation.

The Singapore-headquartered firm — which ships from factories in China to over 150 countries — is also rolling out stricter compliance frameworks in the U.S., Canada, Brazil, and Mexico as part of a global pilot program. Job postings show new audit and risk management roles in Los Angeles to reinforce oversight.

Tang admitted in the August 25 letter that Shein faces “heightened political and regulatory headwinds” in Europe and tariffs in the U.S., which have slowed growth. Coresight Research projects Shein’s U.S. revenue will rise 20.1% in 2025, down sharply from 50% growth this year, while Europe is expected to surpass the U.S. for the first time.

Shein’s compliance revamp follows mounting criticism of its opaque governance, copyright issues, and environmental standards — with a French OECD agency finding it noncompliant with global responsible business guidelines.

The UK and Digital ID: An Outlier Among Developed Nations as Tony Blair Calls for Reform

The UK remains one of the few developed economies without a national ID card scheme, according to recent research, making it an outlier in a world where most nations have adopted some form of identification system. A study conducted for Sky News’ Sunday Morning with Trevor Phillips reveals that out of 38 countries in the Organisation for Economic Co-operation and Development (OECD), only six—Australia, Canada, Ireland, New Zealand, the United States, and the UK—do not have a national ID system.

The debate over the introduction of a digital ID has been reignited by former Prime Minister Sir Tony Blair. In a recent Daily Mail article, Blair argued that modern technology could help make governing more efficient by addressing issues like lower taxes and improved public services. He called for a “once-in-a-generation disruption,” with digital ID systems as a potential starting point.

During Blair’s tenure, compulsory physical ID cards were a key proposal, but the plan was shelved by the coalition government before it could be implemented. Now, through his Institute for Global Change, Blair has advocated for a digital ID system that could cost £1bn to launch and £100m annually to maintain. However, he suggests the system could save the UK Treasury up to £2bn per year, as well as boost GDP by 3%, according to a 2019 McKinsey analysis.

Despite the potential benefits, digital IDs have faced criticism for posing risks to civil liberties and paving the way for a surveillance state. Countries around the world vary in their approach to ID cards, with most OECD nations making them optional. However, countries like Chile, Luxembourg, and Turkey have made carrying an ID card mandatory. In the last decade, countries such as Norway, Hungary, Denmark, Japan, and Lithuania have introduced mandatory ID cards, signaling a growing trend toward digital identity systems.

The UK government’s stance on digital IDs remains unclear. While Business Secretary Jonathan Reynolds initially suggested that Home Secretary Yvette Cooper would explore advice on the matter, this was quickly reversed. Currently, the UK is considering legislation to allow the creation of digital identities that would be optional and not tied to a mandatory national ID system. These digital records could include details like biometrics and addresses, but would remain voluntary.

Australia has already begun rolling out a similar system, despite concerns over privacy and safeguarding. The discussion around digital IDs continues to evolve, and on Sunday Morning with Trevor Phillips, the topic will be further explored with input from figures such as Border Security Minister Angela Eagle, Shadow Home Secretary Chris Philp, and journalist Anne Applebaum.

 

Women in AI: Lee Tiedrich, AI Expert at the Global Partnership on AI

To ensure that AI-focused women academics and professionals receive the recognition they deserve, a series of in-depth interviews is being initiated, spotlighting remarkable women who have made significant contributions to the AI revolution. Over the course of the year, multiple pieces will be published, shedding light on the crucial work often overlooked in this rapidly evolving field. Devamını Oku