- The Fast-Fashion Shein brand was sentenced by France to a record fine of 40 million euros.
- “The Directorate General for Competition, Consumption and the Repression of Frauds (DGCCRF) revealed the implementation (…) of misleading business practices,” she said this Thursday in a press release.
A record fine of 40 million euros. This is what the General Directorate of Competition, Consumption and Fraud Repression (DGCCRF) to the Infinite Style E-Commerce Ltd, sales manager of products of the brand Shein, Chinese Fas-Fashion giant, sent.
At the end of a survey carried out between October 1, 2022 and August 31, 2023, the DGCCRF was able to establish that the company was devoting itself to “deceptive commercial practices with regard to consumers on the reality of the price reductions granted and on the scope of commitments concerning environmental allegations”
she said in a statement published this Thursday, July 3.
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 it indicated a reference price. “These practices of profusion of barred prices and permanent promotions thus give the consumer the impression of making very good deals”
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”
.
Read
“Dark patterns”: what are these methods of manipulation of buyers of which Shein is accused?
Another act denounced: “misleading commercial practices”
on “The scope of commitments concerning environmental allegations”
de Shein.
Shein says he is “fully committed to transparency and compliance with French regulations”
In a statement to AFP, the Chinese group claims to have “implemented the necessary corrective actions 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, specifying that “These adjustments had no impact on the final prices offered to consumers”
. Shein also assures that ISEL takes “Very seriously its legal and regulatory obligations in France”
and remain “fully committed to transparency and compliance with French regulations”
.
