France has fined discount online retailer Shein €22 million ($25.5 billion) for breaches of consumer protection rules, including failures to provide mandatory information to customers.
The country’s competition and anti-fraud watchdog said on Wednesday an investigation last year found that the platform had failed to comply with consumer regulations on multiple fronts.
According to the authority, Shein sent order confirmations that did not meet legal requirements. The confirmations lacked information including the price, date of purchase, delivery period, details of the seller and warranty information, it said.
Shein also failed to properly respect consumers’ withdrawal rights, preventing customers from cancelling purchases under the conditions required by law, the Paris-based Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) said.
In addition, the authority said the ultra-fast fashion retailer did not provide sufficient information on the environmental standards of its products, including details related to microplastics.
Shein rejected the findings and said it would challenge the penalty.
A company spokesman described the fine as “clearly disproportionate and discriminatory” and argued that no consumer harm had been demonstrated.
The spokesman said the information cited by regulators had been available through customers’ online accounts and that missing environmental information had resulted from a technical error.
The penalty follows another French fine imposed on Shein last year. In that case, authorities ordered the Singapore-based retailer to pay €40 million for allegedly misleading consumers over price discounts.