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Fashion giant Shein hit with massive fine over claims it deceived millions of customers: 'Repeatedly violated that trust'

"We fully cooperated with the investigation."

"We fully cooperated with the investigation."

Photo Credit: Depositphotos.com

The fast-fashion industry is not new to lawsuits. Many top fast-fashion brands have been accused of unethical wage practices and harmful work environments.

Most recently, Shein has found itself in a lawsuit against multiple California counties for shipping delays without repercussions.

What's happening?

As reported by the San Francisco Chronicle, the counties of San Francisco, Napa, Sonoma, and Los Angeles filed a consumer protection lawsuit on behalf of their citizens following allegations of illegal shipping delays. The counties reached a settlement with Shein at the Napa County Superior Court. 

The lawsuit stated that Shein failed to timely notify its customers or offer refunds when online orders were not shipped within 30 days, as required by California law.

The result of this settlement is that Shein must pay $700,000 in fines and be required to ship packages on time. Shein also agreed to never offer false statements about shipping delays.

"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," Napa County District Attorney Allison Haley said in a statement, per the Chronicle.

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A Shein representative shared a statement after the settlement was reached: "We fully cooperated with the investigation throughout and, while not admitting any liability, have taken steps to ensure our shipping and customer practices and communications comply with applicable law."

Why is Shein's lawsuit concerning?

Shein was one of the first brands to utilize TikTok Shop and became one of the biggest brands in the world because of its marketing strategy, according to the BBC. However, with exponential growth comes visibility and accountability, and Shein has been in the headlines often for lawsuits.

Shein has been called out for exploiting workers' rights, tax evasion, dangerous levels of lead in clothing, and now illegal shipping delays.

In addition, Shein's clothes, along with all fast-fashion items, are designed to deteriorate, and consumers are under-wearing and failing to recycle them properly. According to Earth.org, only 12% of the textiles that are used for clothing end up being recycled — 100 billion garments are produced every year, and 92 million tons of them end up in landfills. 

How can you avoid fast fashion?

Companies are working to find solutions to combat textile waste, but you can take individual action as well. 

Shopping fast fashion may seem like it's the most accessible option, but in reality, that's just its marketing. Thrifting is a great way to get clothing, and it's available in major cities, small towns, and online

Thrifting offers accessible prices, access to vintage brands and household items, and often longer-lasting pieces made with safer materials. For even more local and free options, look out for clothing swaps in your area.

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