Boohoo has been slapped with a £2m fine in France after the country’s consumer watchdog found the fashion retailer had misled shoppers with discounts that were not always genuine.
France’s Directorate-General for Competition, Consumer Affairs and Fraud Control said Boohoo exaggerated savings on its French website, creating a false impression of the deals customers were receiving.
Of the promotions analysed by the regulator, 40 per cent were found not to represent a genuine price reduction, while seven per cent offered a smaller saving than advertised.
In a further 48 per cent of cases, the supposed promotion actually resulted in a price increase, the watchdog said.
Boohoo was also found to have breached French product labelling rules by using terms including “leather” and “suede” to describe products made from synthetic materials.
The offences related to a period between October 2023 and February 2024.
A Boohoo spokesperson stressed that the issues occurred under the retailer’s previous management and had since been resolved.
“We have cooperated fully with the regulator, and continue to review how we price and label our products,” the company said.
Shares in Boohoo owner Debenhams Group dropped 2.4% following news of the fine on Thursday.
France steps up fast fashion crackdown
The penalty comes as French authorities intensify scrutiny of online and fast fashion retailers over their pricing, marketing and environmental practices.
Shein was fined €40m last year after French authorities found the ecommerce giant had also misled customers over discounts, while lawmakers have since passed legislation targeting what they describe as “disposable” fast fashion.
It is not the first time Boohoo has faced scrutiny over its promotional pricing.
It reached a settlement in 2022 over a $100m US lawsuit alleging Boohoo, PrettyLittleThing and Nasty Gal had used misleading sales promotions. The case was settled without an admission of liability.
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