DGCCRF has just caused a fine of 40 million euros for an endless style of e-commerce LTD Style (ISEL), an entity responsible for the sale of Shein in France. The aim of the penalty is misleading commercial practices, both to the reality of the reduction of the displayed prices and the environmental accusation emphasized by the brand. Should we see an accurate warning stroke or the first act of a wider regulatory swing in global electronic trading?
Promotional mechanics outside the framework
The survey conducted by the National Investigation Service DGCCRF (SNE) between October 2022 and August 2023 focused on prices published on Fr.Shein.com. Result: In 57 % of cases, there was no real price decrease. In 19 % of cases the discount was lower than it was announced. And in 11 %it was actually an increase in prices created in promotion.
These practices are contrary to the European Directive known as “omnibus”, transferred to French law in 2022. The text requires use as a reference the lowest price for 30 days before promotion. According to DGCCRF, the rule is that the brand apparently did not draw.
Introduced greenwashing
The second point raised concerns about environmental promises spread by platform. Shein said he reduces greenhouse gas emissions by 25 %. No concrete evidence was provided. DGCCRF believes that these accusations also fall into misleading practices once they are not justifiable.
In the sector where CSR obligations have become a marketing lever, this case is an essential question: When will it become an unexplained environmental promise illegal?
A symbolic but revealing sanction
Only a fine of 40 million euros represents at a group level The marginal part of the activity. Shein’s turnover increased from EUR 2.3 billion in 2019 to 8.8 billion in 2020, then to nearly $ 15 billion in 2021. In 2024, according to Financial timesNet profit has reached 2 billion dollars.
French fine is equivalent Less than 0.15 % of global turnover and corresponds to A few days of income. However, its effect is measured on the regulatory and reputation level. Shein accelerates its structuring in Europe, develops logistics nodes, prepares to enter the stock market: in this context, there is no offense characterized in French territory without consequences.
Wider signal?
The sanction is part of the global movement. In France, several large platforms have already been caused to order for handling, misleading interface or endless promises. The Digital Services Act (DSA) and the Digital Market Act (DMA), which are deployed, require large platforms new transparency obligations, including commercial procedures and algorithms of recommendations.
DGCCRF action against Shein is therefore similar to a founding When implementing a more restrictive framework, even if it is an isolated case of its severity.
Re -evaluate a room for maneuvering
The case only applies to fast fashion industry. Emphasizes Return of Regulatory Risk as a strategic variable in marketing and commercial decisions. DNVB, marketplace, and digital retail retail players must now systematically integrate the requirements for evidence, traceability and compliance under the penalty for sanctions, but also the loss of trust.
