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France Hits Shein With Record €40 Million Fine for Deceptive Pricing

A year-long DGCCRF probe uncovered inflated discounting alongside unverified environmental claims, prompting the unprecedented penalty.

A view of a Shein pop-up store at a mall in Singapore April 4, 2024. REUTERS/Edgar Su/File Photo
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The Shein and Temu logos are seen in this illustration taken August 22, 2024. Photo: Reuters

Overview

  • DGCCRF found that 57% of Shein’s promotions offered no real markdown, 19% fell short of advertised savings and 11% were actual price increases.
  • French law requires reference prices to match the lowest charge in the previous 30 days, a rule breached by Shein’s practice of raising prices before marking items down.
  • The Paris prosecutor’s office approved the €40 million sanction, marking the largest fine ever imposed by France’s competition and anti-fraud authority.
  • Shein acknowledged the ruling, implementing corrective measures within two months of learning about the DGCCRF probe.
  • EU consumer protection and digital services regulations now impose uniform compliance deadlines across member states, with further investigations expected.