May 9, 2026
Fast fashion brand Shein has built a loyal following in Canada on the promise of ultra-low prices — $8 dresses, $12 jeans, entire back-to-school wardrobes for under $100. But a sweeping lawsuit filed in February 2026 by the Texas Attorney General, combined with independent lab testing, raises a question that no price tag can answer: What exactly is in those clothes?
The short answer, according to the lawsuit and testing by Greenpeace Germany, is a toxic cocktail that includes "forever chemicals" (perfluoroalkyl and polyfluoroalkyl substances, or PFAS), phthalates and lead — some at concentrations far exceeding safety limits in the European Union (EU) and the United States (1).
Advertisement
Canada has no comprehensive federal testing program for chemical content in imported clothing. Health Canada doesn't screen, test or approve these products before they are sold online or in stores. Instead, the onus is on the importer or company to ensure its merchandise complies with the Canada Consumer Product Safety Act — which prohibits hazardous substances like lead and PFAS. However, manufacturers often use a loophole by claiming these chemicals are "incidental (2)."
Shein has denied the toxic product claims, even as the State of Texas launched a lawsuit against the fast-fashion firm.
What if your budgeting tool actually helped you earn? Discover Canadian apps that offer high-interest savings and cash back on your daily spending. Compare top-rated savings apps to start saving and earning.
What the lawsuit and lab tests actually found
In February 2026, Texas Attorney General Ken Paxton filed a lawsuit against Shein in Collin County District Court, alleging the company violated the Texas Deceptive Trade Practices Act by selling products described in court filings as "silent carriers of poison." The lawsuit focuses particularly on children's products and clothing worn by pregnant women (3).
The specific allegations include:
- PFAS in outerwear: Greenpeace Germany published lab findings in late 2025 indicating that seven Shein jackets contained PFAS at concentrations up to 3,300 times the EU limit (4).
- Phthalates in children's products: South Korean regulatory testing cited in the lawsuit found some children's shoes and accessories with phthalate levels as high as 428 times the legal limit.
- Lead and formaldehyde: The Texas lawsuit further alleges the presence of lead and formaldehyde in children's clothing and accessories.
Shein has denied the allegations. The company has stated it conducts millions of its own safety tests annually and that its products meet applicable legal standards.
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Join 19,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why this matters for Canadian shoppers
Canada does not have EU-equivalent restrictions on PFAS in textiles, and the Canada Border Services Agency (CBSA) does not routinely test imported garments for chemical content. Health Canada can take enforcement action when a product is found to be hazardous under the Canada Consumer Product Safety Act (CCPSA), but that process typically follows reported harm or targeted sampling — not pre-arrival screening of every shipment.
This matters in practice because Shein operates one of the highest-volume parcel import flows into Canada. The platform lists thousands of new styles daily and ships directly to consumers, bypassing the retail shelf testing infrastructure that traditional importers must follow.
PFAS are of particular concern because they accumulate in the body over time and have been linked by health researchers to hormone disruption, immune system effects and certain cancers. Children and pregnant women face the greatest risk due to developmental sensitivity. Phthalates, which are used to soften plastics and are found in accessories such as bags and shoes, are regulated endocrine disruptors in Canada under the Prohibition of Certain Toxic Substances Regulations — but enforcement depends on detection.
What you can do right now
Shein's case has not been resolved in court, and the allegations have not been proven. But the independent lab testing conducted by Greenpeace Germany stands on its own. The results were gathered separately from the lawsuit and have been made public, giving Canadian shoppers plenty of reason to pay attention.
Advertisement
Ideally, anyone who has purchased Shein products can reduce harmful exposure by eliminating and replacing these items; however, for Canadians already relying on fast fashion for affordability reasons, this trade-off isn't easy.
While replacing an entire wardrobe with certified organic clothing may appear optimal, it's not practical for many Canadians. Instead, a more feasible approach is to reduce potentially harmful exposure by eliminating or replacing the highest-risk items — children's clothing, garments worn against skin for extended periods and products with rubberized coatings or waterproof finishes.
High interest rates are the ultimate budget killers. Switch your balance to the MBNA True Line® Mastercard® with a 0% introductory rate to stop paying for debt and start paying for your future. Check out low-interest card options at Money.ca.
Where possible, consider adopting the following mindset when shopping for clothing and accessories:
- Prioritize natural fibres — cotton, linen and wool — for items worn close to skin, especially children's pyjamas, underwear and base layers.
- Wash new clothing at least once before wearing, which reduces surface chemical residue, though it does not eliminate absorbed chemicals.
- Avoid Shein’s activewear, waterproof outerwear and children's accessories until more testing is available — these categories have the highest likelihood of chemical treatments.
- If you've purchased Shein products recently, consider reporting concerns to Health Canada's consumer product safety complaint line at canada.ca/en/health-canada/services/consumer-product-safety.
- Check the Competition Bureau of Canada and Health Canada's recall database regularly at healthycanadians.gc.ca for updates on fast fashion product recalls.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Texas Attorney General (1),(3); CBC (2); Greenpeace Germany (4)
You May Also Like
- Here are 6 simple ways to avoid the stress of living paycheque to paycheque, according to Suze Orman
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Romana King, Senior Editor at Money.ca, also writes for various North American publications and the RKHomeowner blog. Her book, House Poor No More, is an Amazon bestseller and five-time award winner, including the 2022 New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award.
