France Fines Boohoo $2.3 Million Euros For Deceptive Practices

France's consumer watchdog has imposed a fine of 2.3 million euros ($2.7 million) on Boohoo, the British fast fashion retailer, for engaging in deceptive practices such as fake discounts and mislabeled materials. The Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) revealed that out of the promotions, 48% were actually price increases, 40% were not genuine price reductions, and 7% had a lower discount than advertised.

Moreover, Boohoo was found to have labeled synthetic products as leather or suede, which violates French rules on product labeling.

Boohoo, which acquired department store chain Debenhams in 2021 and later rebranded itself as Debenhams Group, stated through a spokesperson that the company had fully cooperated with the watchdog. However, the focus of France's crackdown appears to be on ultra-fast fashion, with companies like Temu and Shein under scrutiny. In July, France passed a new anti-ultra-fast fashion law, which will impose fines for each product starting September 2023, with penalties increasing up to 2 to 20 euros by 2030.

The legislation has faced criticism for sparing European and French companies like Zara and Kiabi. Boohoo is currently also facing a legal battle in the High Court from investors after its share price plummeted due to a sweatshop scandal, with investors seeking compensation of up to 245 million pounds ($329 million).