France’s consumer watchdog has fined fast-fashion retailer Boohoo for deceptive practices.
Boohoo has been fined €2.3m (just under £2m) by the French consumer regulator.
The watchdog determined Boohoo used deceptive practices in offering fake discounts through its online site.
The exaggerated discounts gave shoppers a false impression of the savings they might have gotten, the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control) said.
Of the promotions the regulator looked into, 40% were found not to be a real reduction in price; 48% had actually been a price increase; and only 7% were a lower reduction than advertised.
Other misleading practices were also discovered, such as the fast-fashion retailer using the terms “suede” or “leather” when selling synthetic products, which breached French law.
A Boohoo spokesperson said these problems were in relation to a period between October 2023 to February 2024, during which time the business was under previous management.
“We have co-operated fully with the regulator, and continue to review how we price and label our products,” the spokesperson said.
The fine comes as part of a settlement to an ongoing case introduced in California. This follows four years after Boohoo reached a settlement in a US lawsuit for $100m (£73m), which also alleged that fake promotions were used to mislead shoppers.
The settlement was agreed “without admission of liability”, according to Boohoo, whose sister brands PrettyLittleThing and NastyGal have also been accused of false promotions in the US during the last five years.
The French government is leading a clamp down on the fast-fashion industry and has taken aim at Chinese-owned sites Shein and Temu by passing laws and handing out fines against “disposable” clothing. This includes a €40m fine (£32m) for Shein for misleading promotions.