Regulator's Findings
France's Directorate-General for Competition, Consumer Affairs and Fraud Control (DGCCRF) imposed a €2.3 million fine on Boohoo, a British online fashion retailer, for deceptive practices. The regulator found that Boohoo exaggerated discounts on its French website, misleading shoppers about actual savings. Of the promotions examined, 40% offered no real price reduction, 7% provided a smaller discount than advertised, and 48% were actually price increases.[S1][S2]
Boohoo's product descriptions were also misleading, with terms like 'leather' and 'suede' applied to artificial materials, which is against French labeling regulations. The DGCCRF found that 95% of the inspected items were non-compliant. This €2.3 million fine comes after an investigation period from October 2023 to February 2024, with Boohoo blaming past management for the issues.[S1][S2]
Company Response and Context
A Boohoo spokesperson said the issues were historical and have been resolved, emphasizing full cooperation with the regulator. The company, now part of Debenhams Group, has faced challenges including competition from rivals like Shein and Temu, increased costs, and a tarnished reputation from past labor practices. This fine follows a $100 million US settlement in 2021 over similar allegations of fake promotions.[S1][S2]
The French action is part of a broader crackdown on fast fashion, with Shein fined €40 million last year for misleading discounts. Boohoo's parent company, Debenhams Group, saw shares drop 2.4% following the announcement. The company recently raised £35 million from shareholders to reduce debt and faces pressure from major shareholder Frasers Group.[S1][S3]
