France has enacted fees of nearly €20 ($23) per garment for "ultra-fast fashion" companies, in an effort to discourage online retailers with vast, rapidly changing inventories of inexpensive clothing.
French Commerce Minister Serge Papin cited a need to limit the impacts that fast fashion companies have on the economy and environment. Both Shein and Temu have also faced scrutiny over accusations of forced labor, the use of unsafe materials and deceptive marketing.
According to BBC News, the levies came into effect on September 1, and appear to be aimed at Chinese e-commerce giants like Shein, Temu and AliExpress. The legislation — which was approved by French lawmakers in June — also exempts European retailers like H&M and Zara, prompting China's commerce ministry to accuse France of violating World Trade Organization principles with a discriminatory trade barrier.
The regulation determines whether a company qualifies as an ultra-fast fashion retailer based on the volume of clothing placed on the market, and the cost of repairing garments relative to their purchase price. Individual fees for each item vary based on how products rate on those standards, capped at 50% of the pre-tax price of the garment.
In a statement to BBC News, Shein said that the legislation will "worsen the purchasing power of French consumers," while Temu argued that it should not qualify as a fast fashion company since it does not manufacture its own products.
