The Chinese Ephemeral Fashion Giant Shein received a fine of 40 million euros for “deceptive commercial practices” after a survey conducted by the General Directorate of Competition, Consumption and Repression of Fraud (DGCCRF), the Directorate of the Ministry of the Economy announced Thursday.
The survey on the repression of fraud reveals in particular the “implementation” of the Electronic Commerce Commerce LTD (ISEL), responsible for SHEIN products sales, “deceptive commercial practices with respect to consumers about the reality of the price reductions granted,” said the DGCCRF in a press release. The fine was “proposal” with “the agreement of the Public Prosecutor of Paris” and “at the end of a transaction procedure”, specifies the DGCCRF. This is a record amount for this type of crime.
“57% of verified ads” without lower price
Specifically, he is significantly accused of Shein for increasing “certain prices before applying a reduction”, or not having taken into account the “previous promotions” when he indicated a reference price.
He discovered that “57% of verified ads” during the survey offered “without price drop, 19% due to fall lower than the announced and 11% were actually price increases.”
To carry out its survey, the repression of fraud in France explains that it has indicated on the Shein website “the prices of several thousand products (sale price, reduced prices and percentage of reduction)” between October 2022 and August 2023. Another action denounced: “deceptive commercial practices” on “the scope of commitments on environmental allegations” of the allegations “of Shein.
The Chinese group defends itself
In a statement, the Chinese group claims to have “implemented the necessary corrective actions, completed within two months” after being notified by the DGCCRF “in March 2024”.
Shein also assures that Isel takes “very seriously his legal and regulatory obligations in France” and remains “totally committed to transparency and compliance with French regulations.” For its part, the DGCCRF indicates that “it maintains its surveillance in the evolution of the practices observed at the end of these investigations.”
Source: BFM TV
