The survey of the repression of fraud reveals in particular “the implementation” by the Infinite Style E-Commerce Ltd (ISEL) company, responsible for sales of Shein products, “misleading 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” and “at the end of a transaction procedure”, specifies the DGCCRF. This is a record amount for this type of offense.
Concretely, it is notably accused of Shein for increasing “certain prices before applying a reduction to them”, or of not having taken into account “previous promotions” when it indicated a reference price.
“These profusion of barred prices and permanent promotions thus give the consumer the impression of making very good business,” explains the DGCCRF.
However, she noted that “57 % of the announcements verified” during the survey offered “no price drop, 19 % a lower drop than announced and 11 % were in reality price increases”.
To conduct its survey, the repression of fraud in France explains that it has noted on the Shein website “prices of several thousand products (sale price, barred prices and reduction percentage)” between October 2022 and August 2023.
Another action denounced: “deceptive business practices” on “the scope of commitments concerning environmental allegations” of Shein.
In a declaration to AFP, the Chinese group claims to have “implemented the necessary corrective shares, completed within two months” after being notified by the DGCCRF “in March 2024”.
