France Targets Shein, Temu With Fast-Fashion Fees

France began imposing new penalties on ultra-fast-fashion products on Tuesday, targeting the environmental impact of cheap clothing sold by major e-commerce platforms such as Shein and Temu.

The fees are part of France’s fast-fashion law passed in June, which seeks to reduce clothing overproduction, textile waste and the environmental footprint of low-cost fashion. Penalties range from €0.25 ($0.30) for items such as socks or boxer shorts to as much as €12 ($14) for a coat. The charge cannot exceed 50% of a product’s pre-tax selling price.

The measures add to regulatory pressure on Shein as changes to duty-free treatment for low-value e-commerce parcels in the European Union and United States weigh on its business. The company also made its Hong Kong stock market debut on Tuesday after its valuation fell significantly ahead of the listing.

Shein and Temu did not respond to requests for comment about the new French fees. Shein’s France spokesperson, Quentin Ruffat, has previously argued that the penalties could ultimately hurt consumers by increasing clothing prices.

China’s commerce ministry has also criticized the French fast-fashion law, describing it as discriminatory and a potential trade barrier that could conflict with World Trade Organization principles.

France will calculate the penalties using several factors, including the number of products sold, pricing and repairability. The fees are scheduled to increase further from 2030.

Shein’s enormous product catalogue could make it particularly exposed to the rules. According to its prospectus, the retailer offered more than 2 million products as of March 31 and introduced approximately 4,700 new apparel styles each day.

European fashion retailers such as Inditex-owned Zara and H&M are not expected to face the same impact because their online product ranges are considerably smaller, French officials said.

The penalties will be collected through France’s textile Extended Producer Responsibility system. Under EU textile-waste regulations, member states require producers to contribute toward the costs of collecting, sorting and recycling discarded clothing. France’s designated textile organization will collect the additional fast-fashion fees from liable manufacturers or importers.