Fashion Fines and Faux Discounts: Shein’s $47 Million Faux Pas in France

Crackdown on Deceptive Practices

Alright, folks, here’s the scoop: France’s antitrust authority slapped a whopping €40 million fine on fast-fashion juggernaut, Shein. Why? They’ve been playing a bit loose with discount rules. The French Competition, Consumer Affairs, and Fraud Prevention Agency (try saying that three times fast) got wise to these shadowy practices after nearly a year of digging.

Discount Dilemmas and Regulatory Repercussions

Let’s talk numbers: French law insists discounts have got to be real. That means the reference price should be the lowest over the past 30 days. But Shein? They were cooking the books, inflating prices before slapping on a “discount.” It’s the retail equivalent of a New York-style bait-and-switch. Consumers were basically duped into thinking they were getting deals that didn’t exist. Yikes.

Results of the Investigation: Numbers That Speak

So, during the probe from October 2022 to August 2023, here’s what came up: 57% of Shein’s French site deals were all smoke and no fire—zero real savings. Another 19%? Less generous than they appeared. And the kicker? 11% of the “discounts” were actual price hikes in disguise. Like discovering your dollar pizza slices cost two bucks.

Shein’s Response: A Commitment to Compliance

In their defense, Shein’s Infinite Style E-Commerce (ISEL) acknowledged the slip-up by March last year. They claim to have snapped into action, fixing things in just two months. Now, they vow to keep everything above board and French-law-friendly.

Questions & Answers

What led to Shein’s fine in France?
The French watchdog found Shein guilty of tricking customers about the legitimacy of discounts by ignoring discount reference laws.

How valid were Shein’s discounts according to the probe?
The investigation uncovered that 57% of Shein’s so-called deals didn’t offer real savings, with several even presenting price hikes.

What corrective actions did Shein undertake?
Shein reported it jumped on fixing these issues when notified, ensuring all was set right over a year ago.

Want More on Fast Fashion?

Check out this piece on fast fashion and its impact. Let’s keep the conversation going and hold these big players accountable, shall we?