Boohoo fined €2.3m by French watchdog over deceptive discounts

Fashion retailer Boohoo has been penalised with a €2.3m fine by France’s consumer watchdog for deceptive practices, including false discounts and misleading product labeling. The Manchester-based company, formerly part of Debenhams Group, exaggerated discounts, leading consumers to believe they were saving more money than they actually were.

According to the watchdog, 40% of the promotions examined were not genuine price reductions, 7% were less of a discount than advertised, and 48% were price increases. The firm also used terms like "leather" and "suede" to describe synthetic products, violating French rules on product labeling. This is not Boohoo's first regulatory issue; four years ago, the company settled a $100m lawsuit in the US, alleging that it used fake promotions to mislead shoppers.

The French fine follows a challenging period for Boohoo, which has faced stiff competition from low-cost rivals such as Shein and Temu, as well as increased delivery costs and tariffs in the US. The online seller has struggled to generate sufficient profits due to inflation and new regulatory demands, such as packaging and textile waste rules.

Boohoo's brand was also tarnished in 2020 when an independent report found that its Leicester factories had poor working practices. In response to the fine, Boohoo's spokesperson stated that the issues were related to a period in early 2024 when the company was under previous management and are now resolved. The company has cooperated fully with the regulator and continues to review its pricing and labeling practices.

Debenhams Group, which owns several brands including Oasis, Warehouse, Karen Millen, and the namesake Boohoo, has been contacted for comment.