Chinese-founded fashion giant Shein has been fined €40 million ($47.17 million) by France’s antitrust and consumer protection authority for deceptive pricing tactics. The penalty follows an extensive investigation into how the ultra-fast fashion platform advertised discounts on its French website.
The case was centered around Infinite Style E-Commerce Co Ltd (ISEL), the entity responsible for Shein’s sales operations in France. According to the regulator, Shein failed to comply with France’s discounting rules, which require that any promoted discount must reference the lowest price offered on the same product within the previous 30 days.
Instead, authorities found evidence that Shein occasionally raised product prices before applying so-called “discounts,” effectively misleading customers about the savings on offer.
Widespread Violations Across Product Listings
Between October 2022 and August 2023, the French agency reviewed thousands of product listings and found:
- 57% of “discounted” items were not cheaper than their prior prices
- 19% offered smaller discounts than advertised
- 11% were actually sold at higher prices despite claims of markdowns
The regulator described Shein’s approach as “deceptive” and stated that it significantly misrepresented the value proposition being presented to shoppers.
Shein’s Response
Shein acknowledged the findings and confirmed that it had accepted the penalty. In a statement, the company noted that the issues were flagged in March 2023, and that it had taken corrective action within two months.
“All identified concerns were resolved more than a year ago,” a spokesperson for Shein stated, adding that ISEL remains committed to full compliance with French consumer and environmental regulations.
Shein’s penalty underscores a growing global trend: regulatory agencies are cracking down on opaque pricing practices, especially among digital-first retailers operating at scale. For platforms that rely on volume-driven discounting and dynamic pricing, transparent communication is now not just a brand value—it’s a compliance imperative.
The fine also sends a broader message to fast fashion players: market agility must not come at the cost of consumer trust. As ESG and fair pricing standards become stricter across the EU and beyond, brand integrity and legal accountability will need to align more closely than ever.
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