Key facts
- Boohoo was fined €2.3 million by France's consumer watchdog for deceptive practices.
- The company exaggerated discounts, with 40% of promotions found not to be real price reductions.
- Boohoo also used terms like 'leather' or 'suede' for synthetic products.
- This follows a $100 million US lawsuit settlement in 2020 for similar alleged practices.
- Boohoo stated the issues are resolved and occurred under previous management.
Boohoo has been fined €2.3 million by France's consumer watchdog for deceptive commercial practices, including the exaggeration of discounts and mislabeling of products. The French directorate-general for competition, consumer affairs and fraud Control found that 40% of promotions examined were not genuine price reductions, 7% offered lower discounts than advertised, and 48% actually represented a price increase. Additionally, the company was cited for using terms like 'leather' or 'suede' for synthetic materials, violating French labeling rules.
This penalty follows a $100 million settlement in the US four years ago over similar allegations of fake sales and promotions. The online retailer, which has faced increased competition and rising costs, has been working to revive sales after a pandemic boom. The company's parent, Debenhams Group, raised £35 million from shareholders in February to reduce debt.
A Boohoo spokesperson stated that the issues related to a period between October 2023 and February 2024, were under previous management, and have now been resolved. The company has cooperated with the regulator and continues to review its pricing and labeling practices.