Key facts
- France has begun imposing penalties on ultra-fast fashion e-commerce platforms like Shein and Temu.
- The penalties, part of a law passed in June, aim to curb environmental impact and sales of cheap clothing.
- Fees range from €0.25 to €12 per item, potentially reaching €19.50 by 2030, capped at 50% of the pre-tax price.
- The calculation considers product price, quantity, and repairability.
- European retailers like H&M and Zara are not expected to be affected.
- China has criticized the law as discriminatory and a trade barrier.
France has begun imposing penalties on ultra-fast fashion e-commerce platforms, including Shein and Temu, as part of a new law passed in June aimed at curbing sales of cheap clothing and addressing environmental concerns. The levy, which came into effect on Tuesday, ranges from €0.25 per item for basic garments to €12 for items like jackets, with the potential to reach €19.50 by 2030. This fee is capped at 50% of the product's pre-tax price and is calculated based on factors such as the volume of clothing sold, its price, and its repairability. French minister Mathieu Lefevre stated that the "harmful effects of ultra-fast fashion" are well-known. Retailers like H&M and Zara are not expected to be affected by this measure. China's commerce ministry has criticized the law as discriminatory and a trade barrier, suggesting it may violate World Trade Organization principles. Shein has argued that the legislation will negatively impact French consumers' purchasing power, while Temu stated it does not operate as a fast fashion company because it is a marketplace.