Fashion giant Shein hit with massive fine for misleading customers: ‘Repeatedly violated that trust’

The DA's office said Shein "worked cooperatively" with prosecutors during the investigation.

Four California counties have settled a lawsuit with clothing retailer Shein for a total of $700,000 after taking legal action against the company for late deliveries and failing to inform shoppers about delays, according to early-July reporting from the San Francisco Chronicle.

What’s happening?

The suit, filed by prosecutors from Napa, Sonoma, San Francisco, and Los Angeles counties, asserted that Shein hasn’t followed a California law requiring online stores to ship items within 30 days of payment.

The law states that if stores can’t meet this timeline, they must provide a refund, a replacement, or a written notification regarding the delay.

Prosecutors said Shein did none of these things while still accepting payments and promising quick shipping. A Napa Superior Court judge approved the deal on July 9, requiring Shein to pay $600,000 in penalties to be divided among the four counties, plus $100,000 for investigation expenses. The company has also been ordered to “ship products on time as required by law,” according to the Chronicle

“California consumers deserve to have the products they pay for delivered in a timely manner, and Shein repeatedly violated that trust by failing to offer refunds when they couldn’t deliver on time,” said Napa County District Attorney Allison Haley in a statement. 

The DA’s office said Shein “worked cooperatively” with prosecutors during the investigation, according to Women’s Wear Daily.








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Why is fast fashion concerning?

This case reflects just one of the many problems in the fast fashion industry. 

In addition to violating consumer protections, companies like Shein can generate huge amounts of textiles each year, using significant amounts of water, energy, and raw materials during production. Textile dyeing is also a major driver of water contamination.

The manufacturing and subsequent international shipping processes pump heat-trapping gases into the atmosphere, exacerbating the planet’s overheating and extreme weather conditions. 

Trendy fast fashion clothing can also fall apart quickly, soon accumulating in landfills and waterways, exacerbating the waste crisis. 

Legal troubles for Shein keep piling up too. The clothing seller has faced questions about environmentally unfriendly practices, worker treatment, and allegations of copying designs. In 2023, artists sued Shein, claiming the company had stolen their intellectual property. A bipartisan U.S. House group also previously raised concerns that the company might be using forced labor.

What can be done?

Consumers can fight the harmful effects of fast fashion by shopping mindfully. Buying secondhand clothing through local thrift stores or online resale platforms, for example, can save shoppers money while keeping used textiles out of the trash.

When purchasing new clothes, consumers can opt for brands with transparent supply chains and planet-friendly business practices. These companies tend to use higher-quality materials and pay workers more fairly too.

Before reaching for your wallet, you can extend the lifespan of the clothes you already own by washing them less frequently and repairing minor damages yourself. Learning how to mend tears and sew buttons can even be a fun and social activity.

Finally, if shoppers have experienced delayed shipments without legally required notifications or any other potential violations, they might consider informing their state’s consumer protection agency.

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