France imposes fast-fashion fines targeting Shein, Temu

France has begun imposing new penalties on ultra-fast-fashion products sold through e-commerce platforms such as Shein and Temu, as the government seeks to address the environmental impact of mass clothing production.

The measures took effect on September 1 under a fast-fashion law passed in June, Caliber.Az reports, citing Reuters.

The penalties range from €0.25 (30 cents) for items such as socks and boxer shorts to €12 ($14) for a coat, with the charge capped at 50% of the product’s pre-tax selling price.

The penalties are based on a formula that considers the number of products sold, their prices and how easily they can be repaired. They are scheduled to increase further from 2030.

The new fees add to challenges facing Shein as the European Union and the United States move to end duty-free treatment for low-value e-commerce parcels. The company’s valuation has fallen ahead of its stock market debut in Hong Kong on Tuesday.

Neither Shein nor Temu responded to requests for comment on the penalties. Shein’s French spokesperson Quentin Ruffat previously warned that the measures could increase prices for consumers.

China’s Commerce Ministry has criticised the French legislation as discriminatory and a trade barrier, arguing that it could conflict with World Trade Organisation principles.

Shein had more than 2 million products listed as of March 31, according to its prospectus, and was adding around 4,700 new clothing styles each day.

Major European retailers including Inditex’s Zara and H&M are not expected to be significantly affected because their websites carry a smaller selection of products, French officials said.

The measures form part of wider European efforts to address textile waste. Under EU rules, member states are required to have Extended Producer Responsibility organisations that collect fees from textile producers to help finance the collection, sorting and recycling of discarded clothing.

In France, the organisation responsible for financing textile collection and reuse will collect the new penalties from importers or manufacturers liable for the charges.

By Bakhtiyar Abbasov