France Imposes New Fees on Shein, Temu to Curb Fast Fashion

France has begun imposing new fees on ultra-fast-fashion products sold by e-commerce platforms including Shein and Temu, in a bid to curb overproduction and reduce the environmental impact of cheap clothing. The charges, which took effect Tuesday, range from €0.25 for items such as socks and boxer shorts to €12 for coats, capped at 50% of the product’s pre-tax price.

The fees are part of a fast-fashion law passed in June and are calculated using factors including the number of products offered by a brand, their prices and repairability. France is the first EU country to penalise retailers based on the size of their online product ranges. Shein listed more than 2 million products as of March 31, while adding around 4,700 new apparel styles daily, according to its prospectus.

The move comes as Shein faces mounting pressure from new trade rules and declining valuation ahead of its Hong Kong stock market debut. French officials say the measures target platforms that encourage excessive consumption, while China has criticised the law as discriminatory and potentially inconsistent with WTO principles. European retailers such as Zara and H&M are not expected to be significantly affected because of their smaller online product ranges.

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