The DGCCRF has just inflicted a fine of 40 million euros on Infinite E-Commerce Ltd style (ISEL), an entity responsible for sales of Shein in France. The sanction aims at deceptive commercial practices, both on the reality of the reductions of displayed prices and on the environmental allegations highlighted by the brand. Should we see a punctual warning stroke or the first act of a wider regulatory rocking in global e-commerce?
Promotional mechanics outside the framework
The survey conducted by the DGCCRF National Investigation Service (SNE) between October 2022 and August 2023 focused on the prices posted on the site Fr.shein.com. Result: in 57 % of cases, reductions did not have any real drop in prices. In 19 % of cases, the discount was lower than that announced. And in 11 %, it was actually an increase in prices made up in promotion.
These practices contravene the European directive known as “omnibus”, transposed into French law in 2022. The text requires to use as a reference lowest price in 30 days preceding a promotion. A rule that the brand has obviously not respected, according to the DGCCRF.
Unbeaned greenwashing
The other point raised concerns the environmental promises disseminated by the platform. Shein said on his site reduce her greenhouse gas emissions by 25 %. No concrete evidence has been provided. The DGCCRF considers that these allegations also fall under deceptive practices as soon as they are not justifiable.
In a sector where CSR commitments have become a marketing lever, this case poses a substantive question: When does an unharifiable environmental promise become illegal?
A symbolic but revealing sanction
On the group level, the 40 million euros fine represent only Marginal fraction of activity. Shein’s turnover increased from 2.3 billion euros in 2019 to 8.8 billion in 2020, then to almost $ 15 billion in 2021. In 2024, according to the Financial Timesnet profit has reached $ 2 billion.
French fine is equivalent to less than 0.15 % of global turnover and corresponds to a few days of income. But it is on the regulatory and reputational level that its effect is measured. Shein accelerates its structuring in Europe, develops logistics hubs, prepares for an entry into the stock market: an offense characterized on French territory is not without consequences in this context.
A wider signal?
The sanction is part of a more global movement. In France, several large platforms have already been recalled to order for price manipulations, misleading interfaces or unleated promises. Digital Services ACT (DSA) and Digital Markets Act (DMA), being deployed, require large platforms new transparency obligations, including on commercial practices and recommendation algorithms.
The action of the DGCCRF against Shein is therefore similar to a founding act In the implementation of a more restrictive framework, even if, for the moment, it is indeed an isolated case in its severity.
Rethink the room for maneuver
The Shein case questions beyond the sector of Fast Fashion alone. He highlights the Return of regulatory risk as a strategic variable in marketing and commercial decisions. DNVB, marketplaces and digital retail players must now more systematically integrate the requirements of evidence, traceability and compliance, under penalty of sanctions, but also loss of confidence.
