Online clothing retailer Boohoo fined 2.33 million euros

Paris - British online clothing chain Boohoo has been fined 2.33 million euros. The fine follows an investigation that revealed “deceptive commercial practices”, the French fraud authority announced on Thursday.

The fine was for “deceptive commercial practices and non-compliance on product labelling”. It was proposed to the company with the agreement of the Paris public prosecutor, which it accepted. This was stated in a press release by the Directorate General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF).

The fraud authority accuses Boohoo.com of deception regarding “the truthfulness of its advertised promotions”. During its investigation, it analysed the prices of several hundred products sold on the boohoo.com website, including selling prices, strikethrough prices and percentage reductions. The authority subsequently “uncovered deceptive commercial practices”.

“These practices of strikethrough prices and permanent promotions give the consumer the impression they are getting a very good deal and are likely to influence their purchasing decision,” the DGCCRF highlighted.

“However, 40 percent of the verified listings offered no price reduction; 7 percent offered a smaller reduction than advertised; and 48 percent were actually price increases.” This amounts to “a total of 95 percent of non-compliant listings,” the fraud authority noted.

The DGCCRF also noted the use of the terms “leather”, “faux leather” or “suede” in the description of synthetic products, which is prohibited.

It also noted “a lack of information on the composition of textile” or “footwear items”. Boohoo.com acquired the Debenhams brand in 2021, a well-known department store chain in Great Britain, following its bankruptcy.