The ephemeral fashion company Shein was inflicted a fine of 40 million euros for “Deceptive commercial practices” After a survey by the Directorate General for Competition, Consumption and the Repression of Frauds (DGCCRF), announced, Thursday, July 3, this management of the Ministry of the Economy.
The survey of the repression of fraud reveals in particular “Implementation” by the Infinite Style E-Commerce Ltd (ISEL) company, sales manager of Shein products, “Deceptive commercial practices with regard to consumers on the reality of the price reductions granted”said the DGCCRF in a press release.
The fine was “Proposed” with “The agreement of the public prosecutor of Paris” et “After a transaction procedure”specifies the DGCCRF. This is a record amount for this type of offense. Concretely, he is notably accused of Shein for increasing “Certain prices before applying a reduction to them”or not to have taken into account “Previous promotions” when he brought in a reference price.
“These profusion of barred prices and permanent promotions thus give the consumer the impression of making very good deals”also explains the DGCCRF. However, she found that “57 % of the announcements verified” During the investigation did not offer “No price drop, 19 % a lower drop than announced and 11 % were actually price increases”.
Shein claims to have taken “necessary” measures
To conduct its investigation, the fraud repression service in France explains that it has noted on the Shein website “Prices of several thousand products (sale prices, barred prices and reduction percentage)” Between October 2022 and August 2023. Another action denounced: “Deceptive commercial practices” on “The scope of commitments concerning environmental allegations” de Shein.
In a declaration to the agency France-Presse (AFP), the group claims to have “The necessary corrective shares implemented without delay, completed within two months” After being notified by the DGCCRF “One March 2024”. “The set of points raised” by the DGCCRF investigation “Has therefore been treated for over a year”says the company, stating that “These adjustments had no impact on the final prices offered to consumers”.
Shein also assures that he is taking “Very seriously its legal and regulatory obligations in France” and remain “Fully committed to transparency and compliance with French regulations”. For its part, the DGCCRF affirms that it “Maintain[dra] its vigilance on the evolution of practices observed at the end of these investigations ”.
