The Italian Competition Authority has launched an investigation over alleged false advertisement claims by Infinite Styles Services Co, the company behind global fashion retailer Shein, on the basis of the environmental sustainability of its clothing.
This marks growing scrutiny in the fashion industry about claims around sustainability, considering that more and more consumers are educated on the impacts of their purchases.
Allegations of Misleading Advertisement
The Italian regulator investigation is based on some parts of Shein’s website, such as “#SHEINTHEKNOW,” “evoluSHEIN,” and the “Social Responsibility” sections. According to the Authority, Shein has attempted to brand itself and its production and commercial practices as sustainable by making vague and misleading environmental claims. These are terms such as “circularity” and product quality, by which consumers might infer Shein’s true nature of activities being closer to environmentally conscious production as compared to the one it actually is. These claims have been mischievously used for exploiting the increasing sensitivity of the consumer toward his environmental impact choices, according to the Authority.
This is part of a greater emphasis by the European Union (EU) to curb the practice of greenwashing, which has been rife in the corporate world, where companies exaggerate or make false claims about their products’ environmental benefits. The EU Commission has introduced several regulations aimed at protecting consumers against deceptive claims on sustainability. As part of that effort, the Green Claims Directive presented recently demanded that businesses substantiate and verify claims about the environmental characteristics of their offerings. In addition to that, the Ecodesign framework is further aiming at setting EU-wide sustainability requirements for nearly all products and enhancing consumer information on environmental sustainability.
The Industry Under the Microscope
Fashion happens to be one of the leading industries that have been put under a microscope. Its effects on the environment are highly correlated with those caused by the European Commission rules proposed for the sustainable management of textile waste and producers’ responsibility with regard to the whole lifecycle of textile products. Alarmingly, only 22% of post-consumer textile waste is collected for re-use and recycling, with most of it ending up in a landfill or incinerated. The textile sector has one of the most alarmingly high impacts on climate change and environmental degradation, owing to its significant greenhouse gas emissions, water, and land usage.
The UK’s Competition and Markets Authority also targeted the fashion industry mainly for greenwashing. Therefore, more pressure is placed on clothing brands to be transparent and accountable.
Information Charges Against Shein
There are such specific allegations that the Italian regulator is investigating, among them, there are concerns for Shein’s “evoluSHEIN” collection under the claim of being “sustainable.” It has been reported that the company does use green fibers on this line, and the Authority claims that this is misleading of the consumer given the fact that the company had not had anything to report about whether the clothing was recyclable or not. Further, while Shein touts itself as a part of the journey toward decarbonization, reports published in the past couple of years show that greenhouse gas emissions in the company have risen astronomically.
Shein has made climate goals, one of which is to cut Scope 3 value chain emissions in half by 2030. However, the probe makes its claims suspect with the highlighted inconsistency between its marketing and actual environmental impact.
Shein’s Response
After stating their willingness to cooperate with the relevant Italian authorities, one of Shein’s spokespersons noted that the company was “willing to cooperate openly with relevant Italian authorities and provide all necessary support and information to answer any inquiries.” The spokesman also said the company respected the laws and regulation of the market it operated in, before being transparent with its customers.
The Broader Implications
Investigations into Shein are important reminders in the importance of having real sustainability practices for the fashion industry. True sustainability in any industry will relate to consumers demanding more accountability and transparency from brands, all of which puts companies that engage in misleading advertising at grave risk-not just in terms of legal repercussions, but also in terms of trust through the consumers’ standpoint.
Another telling reflection of the global trend is the action on the part of the Italian Competition Authority. As regulators across the globe increase their scrutiny of sustainability claims, brands like Shein may need to rethink their marketing strategy and actual practices.
To conclude, this investigation on sustainability claims made by Shein shines a light on the continued tests and scrutiny the fashion industry remains under at large. With regulation setting strict guidelines and consumers demanding more, brands would have to be bothered with actual sustainability efforts rather than greenwashing practices. The outcome of this investigation will serve as a precedent that will influence the tone in which the future of environmental messaging and responsibility will be met by fashion retailers and decide the course for the industry’s pursuit of a sustainable path.