France’s anti-trust agency has fined Chinese e-commerce fashion retailer Shein 40 million euros, according to a Reuters report.
The official statement by the agency made on Thursday states the penalty is imposed after an investigation that concluded Shein was responsible for deceptive business practices, such as incorrect discounts and unclear claims about its environmental claims. The company has accepted the fine.
As per French rules, the price to be taken into consideration when applying a discount should be the lowest one offered by the retailer for thirty days preceding the offer. Shein allegedly broke the rule by sometimes choosing to increase the price before applying the discount.
Thousands of products were examined on Shein’s French site as part of the probe between October 1, 2022, and August 31st, 2023. 57% of advertised deals were not offering a discount, 19% were offering a discount but less than promised, and 11% were offering products with increased prices.
Infinite Style Ecommerce Co Ltd—who is responsible for handling Shein’s sales in France—has taken corrective measures after being informed by the country’s antitrust agency, according to a statement made by the e-commerce retailer.