Tuesday, 02 January 2024 12:17 GMT

France Slaps New Fines on Shein, Temu Fast Fashion


(MENAFN) Starting Tuesday, France will levy financial penalties on ultra-fast fashion products sold via platforms such as Shein, Temu and AliExpress, according to French broadcaster RMC-BFM.

The penalties are part of an anti-fast-fashion law enacted this summer, and will apply to items classified as ultra-fast fashion under an environmental scoring model that weighs factors such as how many products a brand puts on the market and how easily those items can be repaired.

Fines will start relatively modest: €0.50 ($0.58) on underwear, €6 ($7) on a shirt, €9 ($10.50) on jeans and €12 ($14) on a jacket. By 2030, those amounts are set to rise sharply, to €2 ($2.33), €8.25 ($9.63), €17.25 ($20.13) and €19.50 ($22.75), respectively — though the penalty can never exceed 50% of a product's sale price.

The law is aimed at brands releasing more than 16,000 product references per season across five categories. Shein, which reportedly launches over 1.7 million references a year, is squarely caught by that threshold, even though the company is not named directly in the text of the law. By contrast, other major fast-fashion players — Primark, Zara, Uniqlo and H&M — fall below the current criteria and won't face the new penalty.

Companies, not consumers, will be billed directly for the fines, though firms retain the option of passing costs along to shoppers, either by raising prices or adding a separate fee at checkout.

The penalty scheme builds on an earlier measure: a charge on small parcels that France put into effect in July.

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