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Shein creates new compliance unit amid fines

Fast-fashion retailer Shein is launching a comprehensive internal overhaul, establishing a new Business Integrity Group to address growing regulatory risks. The move follows significant fines, including $174.5 million in France for data privacy violations, $46.6 million for misleading discounts, and $1.17 million in Italy for greenwashing. Executive Chairman Donald Tang stated the company is centralizing compliance, governance, and external affairs teams. Shein has piloted enhanced controls in the U.S., Brazil, and Mexico, and is hiring for new compliance roles. The push follows an OECD investigation concluding Shein fails to comply with international guidelines on responsible business conduct.

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