France’s antitrust agency said on Thursday it had fined fast-fashion retailer Shein €40 million ($47.17 million) over its deceptive business practices, including misleading customers on discounts and the company’s environmental impact. The competition regulator said Shein had accepted the fine.
France announced Thursday a record €40 million fine against e-commerce giant Shein over “deceptive commercial practices” after a competition inquiry, saying it misled customers on price deals and on its environmental impact.
The French competition and anti-fraud agency said the investigation found Shein used “deceptive commercial practices towards consumers regarding… price reductions”, with the fine handed down with the blessing of the Paris prosecutor’s office.
The DGCCRF competition office said the nearly year-long probe found that the firm raised certain prices before lowering them.
It added that the China-founded retailer had accepted the fine.
“These practices of greatly discounted prices and permanent promotions give consumers the impression they’re getting a great deal,” said the DGCCRF.
If found that 11 percent of advertised discounts it checked “were actually price increases”.
In 57 percent of cases Shein’s advertised promotions actually offered “no price reduction” and in 19 percent of cases the price drop “less significant than announced”.
In a statement to AFP, Shein said it had put into action “without delay” necessary corrective action inside two months on learning of the DGCCRF probe against in March of last year.
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