France Fines Shein €40 Million for Misleading Discounts

France’s consumer watchdog has fined fast-fashion retailer Shein €40 million after finding widespread deceptive practices on its French platform. The DGCCRF, the nation’s competition and fraud regulator, revealed Shein routinely misled customers with fake discounts – 57% of promoted items had no real price drop, and 11% were even sold at higher prices after being advertised as deals. Investigators also found Shein had frequently raised prices just before announcing a sale, a move that further deceived shoppers.

Authorities also determined that Shein’s environmental claims were unsubstantiated. Although Shein advertises commitments to limit its impact on the planet, French regulators concluded these statements don’t align with the company’s ultrafast fashion business model, which is known for significant pollution.

Shein has accepted the fine and pledged corrective measures, but international scrutiny over its discount tactics and sustainability promises continues to grow. French authorities say this fine is a warning: retailers must ensure that advertised deals and environmental claims are legitimate.

Follow-Up: Inditex Brings Budget Brand Lefties Back to France to Compete with Shein

In a direct response to the intensifying competition from online players like Shein, Zara-owner Inditex has announced the relaunch of its budget brand Lefties in France. Originally launched in France in 2009 but closed in 2012, Lefties will re-enter the French market this year or next, aiming to attract younger, price-sensitive shoppers.

Lefties, established as an outlet for Zara’s leftover stock but now operating in 18 countries, offers budget-friendly fashion at prices comparable to Shein and other low-cost rivals, with dresses starting at just €9.90. Inditex’s CEO confirmed plans to test the brand in new markets as part of broader international expansion, introducing Lefties as a direct alternative for French consumers seeking affordable fashion.

With both regulatory pressure and increased competition, the French fashion retail landscape is shaping up for significant change.