The Italian Competition Authority announced that it has launched a investigation into global fashion online retailer Shein’s website operator Infinite Styles Services Co over possibly misleading advertising claims made on the site regarding the environmental sustainability of Shein branded clothing.

According to the regulator, the investigation is focused on the possible misleading nature of environmental claims in several sections of the website, including “#SHEINTHEKNOW”, “evoluSHEIN” and “Social Responsibility” areas of the site, with the Authority alleging that the company “would try to convey an image of production and commercial sustainability of its clothing through generic, vague, confusing and/or misleading environmental claims regarding “circularity” and product quality and their responsible consumption,” to benefit from increased consumer sensitivity on the environmental impact of their consumption choices.

The investigation comes as EU regulators and lawmakers have taken a series of actions aimed at addressing greenwashing and protecting consumers from misleading sustainability claims. The EU Commission, for example, launched a series of consumer-oriented environmental and circular economy-focused regulations, including a Green Claims Directive setting requirements for companies to substantiate and verify claims and labels regarding the environmental attributes of products and services, and the Ecodesign framework to establish sustainability requirements for nearly all products across the EU, and to improve information to consumers about products’ environmental sustainability. A recent study by the Commission found that more than half of green claims by companies in the EU were vague or misleading, and 40% were completely unsubstantiated.

The fashion sector in particular has come under pressure to address the climate and environmental impact of its activities, and to tackle misleading green claims in its advertising. The European Commission, for example, has proposed rules aimed at supporting the sustainable management of textile waste, and placing responsibility for the full lifecycle of textile products in the hands of producers, noting that only 22% of post-consumer textile waste is collected for re-use or recycling, with the remainder often landfilled or incinerated, and that consumption of textiles has the fourth highest impact on climate change and the environment, and is one of the top factors impacting water and land use as well as greenhouse gas emissions. In the UK, the Competition and Markets Authority (CMA) has focused most of its greenwashing efforts to date on the fashion sector.

Among the allegations probed by the Italian regulator that information provided by the company on its “evoluSHEIN” collection, declared as “sustainable” by the company, could mislead consumers regarding the use of “green” fibers and omitting information about the non-recylability of the clothing. Additionally, the Authority said that the company would emphasize its commitment to the decarbonization process of its activities, while the Shein sustainability reports for the past few years indicated significant increases in greenhouse gas emissions. Shein set climate goals in 2022, including a target to reduce Scope 3 value chain emissions by 25% by 2030.

In a statement provided to ESG Today following the launch of the probe, a Shein spokesperson said:

“SHEIN is ready to cooperate openly with relevant Italian authorities, providing the necessary support and information to address any inquiries. We would also like to take this opportunity to reaffirm our commitment to complying with the laws and regulations in the markets where we operate and to maintaining transparency with our customers.”