France introduces penalty payments for Shein and Temu over ultra-fast fashion
France on Tuesday began imposing penalty payments on ultra-fast fashion companies, including Shein and Temu, to curb growing sales of cheap clothing through online platforms. The new charges are предусмотрены by the fast-fashion law adopted in June, Daily Maverick reports.
Amount of the new charges
The payments range from €0.25 for a pair of socks or boxer shorts to €12 for a coat. At the same time, the amount cannot exceed 50% of the product’s pre-tax price. From 2030, these payments are set to increase.
They will be calculated using a formula that takes into account the number of products sold, their price and repairability. A French organization established to finance textile collection and reuse will collect the new payments from the importer or ultra-fast fashion manufacturer required to pay them.
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Reaction of companies and China
Shein and Temu did not respond to a request for comment on the new charges. Shein’s representative in France, Quentin Ruffat, previously said that such payments could lead to higher prices for buyers.
China’s Ministry of Commerce called the French law discriminatory and a trade barrier, stating that it may contradict the principles of the World Trade Organization. According to a briefing by French officials, European retailers, including Zara and H&M, do not expect to be affected by the new payments; their websites offer a smaller range of products.
As of March 31, Shein’s assortment comprised more than 2 million items, and the company added 4,700 new clothing designs every day, according to its prospectus.
