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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.

Shein Faces EU Complaint Over ‘Dark Patterns’ in Online Sales Tactics

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Pan-European consumer group BEUC has filed a formal complaint with the European Commission against fast-fashion giant Shein, accusing the online retailer of using manipulative design techniques—commonly known as “dark patterns”—to push consumers into buying more on its app and website.

According to BEUC’s report, Shein employs a variety of aggressive tactics, including pop-ups that warn users they may lose discounts if they leave the app, countdown timers that pressure customers to complete purchases quickly, and infinite scrolling that keeps shoppers continuously engaged. BEUC argues that these techniques encourage overconsumption and may violate EU consumer protection laws.

The organization also highlighted the excessive notifications sent by the Shein app, with one example showing a single phone receiving 12 push notifications in one day. BEUC Director General Agustin Reyna stated, “For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption.”

Reyna added that a satisfactory resolution would require Shein to remove these manipulative features, though he questioned whether the company has sufficient incentive to alter practices that drive sales volume.

Shein Responds, Tensions Remain

In response, Shein said it is cooperating with EU regulators: “We are already working constructively with national consumer authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations.” The company also expressed frustration that BEUC had declined its request for a meeting.

Shein’s success in Europe has been fueled by its highly engaging app experience, which incorporates gamification elements. For instance, its “Puppy Keep” game allows users to care for a virtual dog and earn reward points redeemable for free items. These points accumulate through daily log-ins, frequent scrolling, and purchases—further driving customer engagement and sales.

Broader Industry Under Scrutiny

BEUC’s complaint extends beyond Shein, calling on European consumer protection authorities to investigate similar practices across the broader fast-fashion industry. “Dark patterns are widely used by mass-market clothing retailers,” BEUC noted, urging regulators to expand their inquiry.

A total of 25 BEUC member organizations from 21 countries, including France, Germany, and Spain, have joined the complaint filed with the European Commission and the EU consumer protection network.

This latest action follows a separate warning issued by the European Commission last month, which notified Shein that some of its practices breach EU consumer law. The Commission warned that Shein faces potential fines if it fails to address these concerns.

Increasing Regulatory Pressure

In addition to consumer protection concerns, Shein is also under investigation by EU tech regulators for its compliance with online content rules as part of the bloc’s broader push to tighten oversight on major digital platforms.

Shein’s rival Temu, another rapidly growing discount platform, has also been targeted by BEUC for similar dark pattern practices.

Wise Shifts Primary Listing to U.S., Delivering Fresh Blow to London’s Financial Market

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Money transfer company Wise announced Thursday that it plans to move its primary stock market listing from London to the United States, marking another significant setback for London’s efforts to maintain its position as a leading global financial center. The company’s shares surged more than 8% following the announcement, bringing its market capitalization to over £12 billion ($16.28 billion).

Wise, which first listed in London in 2021, had signaled in April that it was exploring its listing options, but the decision to move to the U.S. surprised many analysts. The shift underscores the growing appeal of American capital markets for global companies seeking higher valuations, deeper liquidity, and broader investor access.

CEO and co-founder Kristo Kaarmann cited the depth and liquidity of U.S. markets as the primary reasons for the move. “The U.S. has the world’s deepest and most liquid capital markets, which will make it easier for investors globally to buy shares in Wise,” Kaarmann said.

Despite the relocation, Wise plans to maintain a secondary listing in London, signaling continued ties to its home market where roughly 20% of its staff and most of its executive team remain based.

Another Blow to London’s IPO Ambitions

Wise’s departure is the latest in a string of high-profile companies abandoning or bypassing London in favor of other markets. In recent months:

  • Unilever selected Amsterdam over London or New York for its ice cream division’s primary listing.

  • Shein, the Singapore-based fast-fashion giant, is reportedly leaning towards a Hong Kong IPO after regulatory challenges for a London listing.

  • Cobalt Holdings, a metals investor backed by Glencore, scrapped its London IPO plans entirely this week.

These developments highlight the ongoing difficulties London faces in attracting and retaining major listings, despite recent reforms aimed at modernizing and liberalizing its capital markets to compete with global peers.

London Reforms Not Enough

Kaarmann emphasized that the U.K. government has made meaningful efforts to modernize its capital market regulations, aligning them more closely with U.S. standards. However, he acknowledged that companies ultimately need to follow the global flow of capital.

“The government has definitely made an effort… but we have to accept the reality of where the world’s capital is concentrated,” he said.

A Wise spokesperson declined to say whether other international listing venues were considered.

Solid Financial Performance

Alongside the listing news, Wise reported strong annual earnings. Underlying pretax profit rose 17% to £282.1 million for the year ending March 31, 2025. Shares of the company are up nearly 40% over the past year, though they remain below their 2021 IPO levels.

Wise’s British competitor, Revolut, which offers similar financial services, has also been expanding aggressively in the U.S., underlining the growing importance of American markets to European fintech companies.