French authorities have imposed a record €40 million fine on fast-fashion giant Shein after an investigation revealed the company engaged in deceptive discount practices. The Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) found that Shein frequently manipulated pricing on its French website, creating the illusion of significant savings for shoppers. In many cases, the company inflated original prices before applying so-called discounts or failed to consider previous promotions when setting reference prices, resulting in misleading crossed-out prices and continuous markdowns.
The DGCCRF’s probe, which reviewed thousands of product listings between October 2022 and August 2023, uncovered that 57% of Shein’s advertised promotions offered no real price reduction. Additionally, 19% of the discounts were less significant than claimed, and 11% of the cases were actually disguised price increases. These practices, according to French regulators, gave consumers the false impression that they were getting exceptional deals, when in reality, the savings were often nonexistent or exaggerated.
Shein has accepted the fine and stated that it took corrective action within two months of being notified of the investigation’s findings in March of the previous year. The company emphasized its commitment to transparency and compliance with French regulations. This case marks the largest penalty ever imposed in France for such deceptive commercial practices and highlights growing scrutiny of fast-fashion retailers’ marketing tactics in Europe.
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(Source: CTV News | Fashion Network | Business Times)
