France began imposing penalties on ultra-fast fashion products on Tuesday, targeting the high-volume business models used by Shein and Temu.
The measure aims to curb surging sales of cheap clothing and reduce environmental damage linked to overproduction. French lawmakers approved the fast-fashion law in June after years of debate over textile waste and online retail.
France introduces product-level fast fashion fines
The penalties start at €0.25, or about 30 US cents, for products such as boxer shorts and socks. They can reach €12, or around $14, for a coat.
France has capped each charge at 50 per cent of the product’s pre-tax selling price. The penalties will rise further from 2030.
Authorities calculate the amount through a formula that considers the number of products sold, their prices and repairability. This structure places the heaviest burden on retailers that introduce vast numbers of cheap, short-lived products.
Shein offered more than two million products as of March 31, according to its Hong Kong listing prospectus. The company added about 4,700 new clothing styles each day.
European retailers such as Inditex-owned Zara and H&M carry smaller online ranges. French officials said they do not expect the new system to affect those companies.
Shein faces wider regulatory pressure
Neither Shein nor Temu responded to requests for comment on the new fees. However, Shein’s French spokesperson, Quentin Ruffat, previously warned that the penalties would raise prices for customers.
Ruffat said French shoppers “could pay €12 more for their Shein clothing by 2030” because of French penalties and European Union charges.
China’s commerce ministry has called the French law discriminatory and described it as a trade barrier. It said the restrictions could breach the World Trade Organization’s non-discrimination principle.
Read More: Why Was AliExpress Fined €550 Million? The Full Story Explained
A ministry spokesperson urged France to “immediately correct these discriminatory practices” and ensure a fair and transparent environment for Chinese companies.
The penalties add to commercial pressure on Shein after the EU and United States ended duty-free access for cheap e-commerce parcels. Those changes weakened a cost advantage that helped Chinese platforms ship low-priced goods directly to Western consumers.
Shein’s valuation plunged before its Hong Kong stock market debut on Tuesday. Its shares fell 8 per cent during their first trading session, as investors weighed regulatory and tariff risks.
New fees will support textile recycling
The French penalties operate within a broader European effort to make clothing producers responsible for waste. The EU’s revised Waste Framework Directive requires every member state to establish an Extended Producer Responsibility system for textiles and footwear.
Under that system, producers contribute to the cost of collecting, sorting, reusing and recycling discarded clothing. EU countries must establish textile EPR schemes within 30 months of the revised directive taking effect.
Read More: Up to 200,000 US Visas Could Be Revoked Under New Policy
France already has an organization that finances textile collection and reuse. It will collect the new penalties from importers or manufacturers responsible for qualifying fast-fashion products.
The law makes France one of Europe’s most aggressive regulators of ultra-fast fashion. Supporters argue that the fees will reduce waste, while Shein and China maintain that consumers and Chinese businesses will bear unfair costs.
