Shein, one of the world’s most popular fast-fashion platforms, has been fined €40 million in France for deceptive commercial practices. The Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) led the investigation into Infinite Style E-commerce LTD (ISEL), the legal entity behind Shein's French operations.
The DGCCRF found that thousands of products listed on fr.shein.com used inflated reference prices, misleading consumers into thinking they were receiving substantial discounts.
Why Was Shein Fined in France?
According to French law, promotional prices must be based on the lowest price applied within the previous 30 days. Shein, however, was found to be manipulating prices before applying discounts, or ignoring prior promotional pricing altogether.
“The operator infringed these provisions by not taking into account previous promotions or, on some occasions, by increasing certain prices before applying a discount,” stated the DGCCRF.
The fine imposed on Shein follows increasing regulatory scrutiny from the European Commission. On May 27, EU authorities demanded that Shein stop a range of abusive practices, including:
Shein was given one month to respond, with financial penalties looming—a warning now realized in France.
The investigation didn’t stop at pricing. The DGCCRF also questioned Shein’s environmental claims, particularly a statement pledging to cut greenhouse gas emissions by 25%.
Shein could not sufficiently justify this claim during the inquiry. As a result, the company has updated its website, clarifying that the emission target—covering Scope 1, 2, and 3 emissions—is set for 2030.
In a statement to FashionUnited, Shein confirmed receipt of the notification and acknowledged “several breaches related to reference prices and environmental regulations.”
However, the Singapore-based company emphasized that the violations date back more than a year, and that since March 2024, it has implemented corrective measures in line with updated French regulations from 2022 and 2023.
“These changes have not affected the final prices offered to consumers,” the company stated.
“Shein takes its legal and regulatory obligations in France very seriously and remains firmly committed to transparency and compliance with French regulations.”
Despite the €40 million fine, Shein remains committed to expanding its presence in France. The brand continues to open pop-up stores, with the latest launched in Dijon in late June 2025.
This signals that Shein is betting on in-person retail experiences to complement its digital reach—even as legal and regulatory pressures mount.
The Shein fine in France is a powerful reminder of the growing accountability faced by global e-commerce platforms. As EU regulations tighten, transparency in pricing and marketing—especially around sustainability—is no longer optional.
Consumers are now better protected, and companies like Shein must evolve to maintain trust in competitive digital markets.
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