Shein fined €1m in Italy for greenwashing Fast fashion giant Shein has been fined €1m in Italy. What does it mean, and why should UK sellers take notice? Written by Emily Clark Published on 20 August 2025 Our experts We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. Written and reviewed by: Emily Clark Writer Direct to your inbox Sign up to the Startups Weekly Newsletter Stay informed on the top business stories with Startups.co.uk’s weekly email newsletter SUBSCRIBE It’s fair to say that Shein doesn’t have the most favourable reputation when it comes to sustainability. And the Italian Competition Authority (AGCM) has decided to take action. The AGCM recently fined the fast fashion giant €1m for making “misleading” environmental claims about its products on its website, also known as greenwashing. New laws on greenwashing recently came into force in the UK this year. Alongside Shein’s fine, it’s a stark reminder for ecommerce businesses to stand by sustainable company values, or risk both legal and reputational damage.Why was Shein fined for greenwashing?Earlier this month, the AGCM fined Shein for €1m (approximately £863,400) following accusations of greenwashing through misleading advertising claims around sustainability.According to the AGCM, the fast fashion giant publicised environmental claims that were vague, generic, or misleading. The AGCM also argued that sections of the Shein website made false or confusing statements about the recyclability of its products. Additionally, the AGCM said that claims of its use of “green” fibres to promote its evoluSHEIN by Design line didn’t specify the environmental benefits of these products throughout their life cycle, nor stated that the line only represented part of Shein’s offering.The AGCM also pointed out that Shein’s stated goals to reduce greenhouse gas emissions by 25% by 2030 contradicted its increase in emissions between 2023 and 2024.As reported by ESG Today, a Shein spokesperson responded to the fine: “We have strengthened our internal review processes and improved our website to ensure that all environmental claims are clear, verifiable, and compliant with regulations.”What is greenwashing?Greenwashing is a practice where a business will deceptively use green marketing to misrepresent its products, services, or policies to appear more eco-friendly than they are.This typically involves using vague or exaggerated language regarding environmental impact — such as “eco-friendly”, “sustainable”, or “green” — without concrete evidence.It’s a particularly pertinent issue within the fashion industry. The sector is reported to be the third largest polluter globally, with approximately 35% of all primary microplastic pollution in the ocean coming from fast fashion producers specifically.Shoppers are taking notice of this, too, with more becoming eco-conscious in the last year. According to research by Rufina Designs, 80% of UK consumers are willing to pay more for goods that are sustainably produced or sourced. How can online stores avoid greenwashing?Shein’s penalty from AGCM is one of the largest fines that firms can receive for making misleading claims in advertising. SMEs are unlikely to face the same level of fine if they engage in greenwashing, but there are still risks – and not just to customer trust.As of April 2025, under the Digital Markets, Competition and Consumers Act 2024 (DMCCA), the UK Competition and Markets Authority (CMA) can fine companies up to 10% of their turnover if they breach consumer law – including by greenwashing. Greenwashing isn’t always intentional. Something as simple as a miscommunication in marketing brainstorms can lead to an unclear message that spirals into greenwashing.Brands should make sure to steer clear of vague language that doesn’t properly explain your practices. Instead, use specific examples of times when your business genuinely made a positive impact on the environment, like the percentage of waste reduction implemented, so that you have evidence in your marketing communications.You should also set realistic targets and be honest with your customers about your progress in reaching them, such as through regular reports. Finally, don’t forget your supply chain. Make sure to properly research the suppliers you’re working with, including their carbon emissions or waste management process. Greenwashing has serious consequences, and it could land you in legal and financial hot water, whether it’s done intentionally or by mistake. So, while it might be tempting to present yourself as an eco-brand, make sure you have a strong and credible case for doing so. Share this post facebook twitter linkedin Tags News and Features Written by: Emily Clark Writer Having worked in a startup environment first-hand as a Content Manager, Emily specialises in content around organisational culture - helping SMEs build strong, people-first workplaces that stay true to their core values. She also holds an MSc in Digital Marketing and Analytics, giving her the knowledge and skills to create a diverse range of creative and technical content. Aside from her expertise in company culture, her news articles breaks down the big issues in the small business world, making sure our SME audience stays informed and ready for whatever’s next. With a genuine passion for helping small businesses grow, Emily is all about making complex topics accessible and creating content that can help make a difference.