The antitrust authorities of France They have imposed one Fine of 40 million euros to Shein for “deceptive commercial practices”including price reductions and deceptive discounts. The sanction has obtained the approval of the Prosecutor's Office of Paris and is based on an investigation of more than a year on the products of the Fast Fashion giant.
The DGCCRF Competition Office (General Directorate of Competition, Consumption and Repression of Fraud) reported that Shein has accepted the fine.
57% of Shein's “offers” were not real
Shein would have cheated her consumers and consumers by applying false discounts on her products. In accordance with French regulations, The reference price of any discount should be the lowest price offered by the retin for that product in the 30 days to the offer. Shein infringed this rule when applying discounts without taking into account previous offers, applying a higher comparable base, and even raising the price of the product before making the discount.
The investigation of the French authorities was carried out on thousands of Shein products between October 1, 2022 and August 31, 2023. It has revealed that 57% of the announced offers did not really offer a lower price19% represented a lower discount than announced and 11% nor followed were price reductions, but increases.
“These practices of great discounts and permanent promotions give consumers the impression of being getting a great offer,” said the DGCCRF in relation to Shein's business model.
For its part, Shein has affirmed thatin March 2024, the French authorities informed him of the infractions detected in the report and that, before this, in the following two months took the necessary corrective measures To solve the problem. The ecommerce giant declared his legal obligations in France very seriously and being committed to transparency.
Shein was already in the spotlight of the French authorities
The historic fine arrives almost a month after France supported the bill of which he has known as “Anti-Sein Law”. This is a law against the model on which Fast Fashion is based, its harmful environmental impact and the negative effects on national companies.
One of the measures collected in the text is a Point system that will evaluate the environmental impact of the products marketed by companies of Fast Fashion, as well as their emissions, the use of raw materials and their ability to be recycled.
To those companies that receive low scores, a Tax up to € 5 per article From 2025, and that would increase to € 10 in 2030. Of course, it has been established that the tax cannot exceed 50% of the PVP (sale price) of the item.
The bill also proposes the Prohibition of advertising for fast fashion brands and apply SANCTIONS TO THE INFFLUENTS Let them promote these on the Internet.
Photo: GPT-4O
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