France has begun charging high-volume fast-fashion retailers fees designed to discourage cheap clothing sales, targeting e-commerce platforms such as Shein and Temu.
The charges stem from a fast-fashion law passed in June, which was introduced to address environmental concerns linked to overproduction in the clothing sector.
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According to Reuters, under the new structure, fees start at €0.25 ($0.29) for items such as socks or boxer shorts and rise to €12 for a coat, with the overall charge capped at half of a product’s pre-tax sales price.
These fees are set to rise further from 2030.
A formula is used to calculate the charges, taking into account how many products a brand offers, their pricing, and how repairable they are.
France has become the first EU member state to penalise retailers according to the number of items listed on their websites.
Shein’s product catalogue exceeded two million items as of 31 March 2026, with roughly 4,700 new apparel styles added on a daily basis, according to the company’s prospectus cited in the report.
Shein’s spokesperson in France, Quentin Ruffat, has previously told Reuters that the charges would push up prices for shoppers.
Meanwhile, China’s commerce ministry has called the French law discriminatory, describing it as a trade barrier that could breach World Trade Organization rules.
The fees come on top of mounting pressure on Shein following the end of duty-free treatment for low-value e-commerce parcels in both the EU and the US, factors that contributed to a drop in the company’s valuation ahead of its Hong Kong stock market debut on 1 September.
According to officials, retailers with smaller product ranges, including Inditex’s Zara and H&M, are not expected to be affected by the new charges.
Under the EU’s Textile Extended Producer Responsibility directive, all member states must introduce comparable fees by 17 April 2028, with proceeds funding the sorting, waste management, and recycling of discarded clothing.
The move follows other recent EU measures targeting the sector.
A temporary €3 customs duty on parcels valued up to €150 and imported from outside the bloc via e-commerce took effect on 1 July 2026.
Separately, the EU has prohibited the destruction of unsold clothing and footwear since 19 July 2026.
