French authorities have introduced new fees targeting ultra-fast fashion companies such as Shein and Temu, as the government seeks to limit the growth of low-cost clothing sales and reduce textile waste.
The measures took effect Tuesday under legislation approved in June, with charges ranging from €0.25 for items such as socks and underwear to €12 for coats. The fees are capped at half of a product’s price before tax.
The system is intended to discourage business models based on producing and selling large quantities of inexpensive clothing while encouraging consumers and manufacturers to consider the environmental impact of disposable fashion.
The new charges come as Shein faces growing pressure across major markets, including regulatory changes affecting low-value packages entering the European Union and the United States. The developments have also weighed on investor sentiment ahead of the company’s proposed Hong Kong stock listing.
Neither Shein nor Temu immediately commented on the French measures. Shein’s French representative, Quentin Ruffat, previously warned that the policy could eventually raise prices for consumers.
China’s commerce ministry has criticised France’s approach, arguing that the legislation unfairly targets Chinese businesses and could hinder international trade. Beijing has also questioned whether the measures are consistent with World Trade Organization rules.
The charges are expected to increase significantly from 2030. Their calculation will take several factors into account, including the number of products sold, their prices and whether the items can be repaired.
Shein’s enormous online catalogue illustrates the scale of its operations. The company’s prospectus reported more than 2 million products available as of March 31, with around 4,700 new clothing designs added each day.
Traditional European fashion retailers, including Zara owner Inditex and H&M, are expected to face less financial exposure because their online catalogues contain considerably fewer products, according to French officials.
The measures are part of broader European efforts to address textile waste and promote more sustainable consumption. EU rules require member states to operate Extended Producer Responsibility systems, under which textile companies contribute toward the collection, sorting and recycling of unwanted clothing.
In France, the organisation responsible for financing textile collection and reuse will receive the new fees from manufacturers or importers deemed responsible for the affected fast-fashion products.
Goodness Anunobi
Follow us on:
