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Fashion giant Shein faces massive fine for violating customers' privacy — here's what you need to know

This isn't the first major fine for the company.

This isn't the first major fine for the company.

Photo Credit: iStock

Fast fashion giant Shein is facing a massive fine in France for violating privacy laws, according to AFP.

What's happening?

France's Commission Nationale de l'Informatique et des Libertés (CNIL) may issue a 150 million-euro ($175 million USD) fine to Shein for improperly handling user data. Shein allegedly used cookies without user consent, which is a violation of France's privacy laws.

This follows a 40 million-euro ($47 million USD) fine that CNIL slapped Shein with just weeks ago for deceptive advertising, including unverifiable environmental claims. Previously, Shein has been under scrutiny by the European Union for human rights and sustainability abuses.

Why is fast fashion a problem?

The high turnover rate of fast fashion has led to a decline in manufacturing standards, posing health risks to consumers. Carcinogenic chemicals are being used in many fast-fashion items, including those made by Shein. Also, because the standards are so low, the clothes wear out more quickly, so even though they're cheaper than much of the competition, you end up spending more in the long run as you buy new clothes to replace the items that wear out.

Fast fashion is also a major environmental hazard. Clothing production accounts for 10% of global emissions, in addition to a host of other ecological costs.

Studies show that consumers are wearing their clothes less frequently before discarding them, which leads to the release of methane in landfills. This gas traps heat in the atmosphere and exacerbates extreme weather patterns like flooding and drought.

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Clothing is also a major source of microplastics that work their way into waterways and the food we eat.

While all clothing decomposes, both unsold and used clothing ends up in developing countries as waste, causing further localized pollution hazards

What's being done about fast fashion?

France's enforcement of consumer protections is helping keep Shein in check and hopefully will nudge it in a more productive direction.

More broadly, the bankruptcy of Forever 21 shows that consumer trends are starting to steer clear of fast fashion. Thrifting or shopping with retailers that offer used goods like ThredUp is a fine way to be a part of the solution.

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