• France fines Shein €40 million for deceptive pricing practices.
• The ruling followed a nearly year-long investigation by French authorities.
• Shein misled consumers regarding discount authenticity and environmental claims.
• 57% of advertised promotions offered no actual price reductions.
• In addition to pricing issues, Shein faced criticism for inadequate environmental disclosures.

France's antitrust agency has issued a record €40 million fine against e-commerce giant Shein for allegedly misleading customers through deceptive business practices. The investigation revealed that the company misrepresented price discounts and provided vague claims about the environmental impact of its products, leading to significant consumer deception, according to Reuters and Le Monde.

The French competition and anti-fraud office determined that Shein inflated original prices before applying discounts, creating a façade of savings for consumers. According to the findings, a troubling 57% of analyzed promotions resulted in no real price benefit, while 19% offered lesser discounts than promised, and 11% involved actual price increases, as noted by India Times and South China Morning Post.

In response, Shein indicated that corrective actions were taken soon after the agency disclosed its concerns in March of the previous year. The company emphasized its commitment to adhering to legal obligations and transparency in its sales practices, according to Reuters and Le Monde.

Moreover, the investigation extended to environmental practices, where Shein was fined for failing to adequately inform consumers about the environmental quality of its products. The penalty was part of ongoing scrutiny from the EU, which has expressed concerns about the rising influx of small parcels, particularly from Chinese companies, generating pressure on local businesses and the environment as reported by India Times and South China Morning Post.