Paris, France: France has begun imposing penalties on ultra-fast-fashion products sold by e-commerce platforms such as Shein and Temu, as the government seeks to tackle the environmental impact of mass-produced, low-cost clothing.
The penalties took effect on September 1, under a fast-fashion law approved by the French parliament in June. The legislation targets the environmental concerns linked to excessive production and consumption of inexpensive clothing sold online.
Fees will range from €0.25 (30 US cents) for items such as socks and boxer shorts to €12 ($14) for a coat. However, the charge cannot exceed 50 percent of the product’s pre-tax selling price.
The new measures add to the challenges facing Shein as the company prepares for its stock market debut in Hong Kong. The end of duty-free treatment for low-value e-commerce parcels in the European Union and the United States has also contributed to pressure on the company and its valuation.
Neither Shein nor Temu immediately commented on the new penalties. Shein’s France spokesperson, Quentin Ruffat, previously warned that the additional charges could ultimately increase prices for consumers.
How the penalties are calculated
The French fee system uses several factors to determine the amount charged, including the number of products sold, their prices and how easily the garments can be repaired.
The penalties are also scheduled to increase from 2030, putting further pressure on companies whose business models rely heavily on large volumes of inexpensive and frequently changing products.
Shein had more than two million products available as of March 31 this year and introduced around 4,700 new clothing styles every day, according to its prospectus.
French officials said that traditional European retailers such as Inditex-owned Zara and H&M are not expected to be significantly affected because their online stores carry a considerably smaller range of products.
The new penalties are linked to wider European Union efforts to address textile waste. Under EU rules, member states are required to have an Extended Producer Responsibility system through which textile producers contribute towards the collection, sorting and recycling of unwanted clothing.
In France, the organisation responsible for supporting textile collection and reuse will collect the new charges from importers or manufacturers responsible for fast-fashion products.
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