The Manchester United target, along with Dortmund teammate Manuel Akanji, were pictured getting a trim at home with neither the players or their hairdresser wearing personal protective equipment - a breach of Germany's restrictions imposed to prevent the spread of Covid-19.
A statement from the German league (DFL) on Friday afternoon read: "The DFL has fined Manuel Akanji and Jadon Sancho.
"The players from Borussia Dortmund had obviously violated general hygiene and infection protection standards at home hairdressing appointments and in particular the medical-organisational concept of the DFL task force.
"There is no question that professional footballers also have to have their hair cut. However, this currently has to be done in accordance with the medical-organisational concept."
Responding to their decision, Sancho later tweeted: 'Absolute joke DFL!"