PARIS: France fast fashion penalties came into effect on Tuesday as the French government moved to curb the rapid growth of ultra-cheap clothing sold by e-commerce platforms including Shein and Temu.
The new penalties are part of a fast-fashion law passed in June aimed at addressing environmental concerns linked to overproduction and excessive textile waste. The France fast fashion penalties range from €0.25 (around 30 US cents) for items such as boxer shorts and socks to €12 ($14) for a coat.
However, the penalty is capped at 50% of the product’s pre-tax selling price.
France Fast Fashion Penalties Target Shein and Temu
The new France fast fashion penalties are designed to discourage the business model associated with ultra-fast fashion, where online retailers sell huge numbers of inexpensive products and introduce new styles at a rapid pace.
The penalties are expected to increase further from 2030, potentially putting additional financial pressure on companies operating at the extreme end of the fast-fashion market.
The measures add to challenges facing Shein and Temu as governments in Europe and elsewhere increase scrutiny of low-cost e-commerce and its environmental impact.
Neither Shein nor Temu responded to requests for comment on the new fees.
Shein’s French spokesperson, Quentin Ruffat, has previously said the penalties could hurt customers by pushing clothing prices higher.
China’s Commerce Ministry has also criticized the French legislation, describing it as discriminatory and a trade barrier. Chinese officials have questioned whether the measures could violate World Trade Organization principles.
How France Fast Fashion Penalties Are Calculated
The amount charged under the France fast fashion penalties is calculated using a formula that considers factors including the number of products sold, their prices and their repairability.
Shein’s enormous product range has attracted particular attention. According to the company’s prospectus, its product selection included more than 2 million items as of March 31, while around 4,700 new apparel styles were introduced each day.
European retailers such as Inditex’s Zara and H&M, which generally offer smaller product ranges online, are not expected to be significantly affected by the measures, according to French officials.
The distinction reflects the government’s focus on the ultra-fast-fashion business model and its contribution to overproduction and textile waste.
France Fast Fashion Penalties Aim to Reduce Textile Waste
The France fast fashion penalties form part of broader European efforts to address the environmental impact of discarded clothing.
Under European Union regulations on textile waste, member states must establish an Extended Producer Responsibility system through which fees are collected from textile producers to help fund the collection, sorting and recycling of unwanted clothing.
In France, the organization responsible for financing textile collection and reuse will collect the new France fast fashion penalties from the importer or manufacturer responsible for the products.
The French government hopes the measures will encourage more sustainable production and consumption while reducing excessive textile waste.
The penalties are scheduled to become more significant from 2030, meaning fast-fashion companies could face increasing costs if they continue to rely on high-volume, low-cost production models.
