Paris – The French government began enforcing a new fast‑fashion fee structure on Tuesday, targeting ultra‑cheap online retailers that sell massive volumes of inexpensive apparel. The penalties, which range from €0.25 (about 30 U.S. cents) for a pair of boxer shorts or socks up to €12 (roughly $14) for a coat, are capped at 50% of a product’s pre‑tax sales price.
How the fees are calculated
The amounts are determined by a formula that considers three key factors: the number of items sold, the retail price of each item, and the product’s repairability. The law, passed in June, is part of a broader effort to address the environmental damage caused by overproduction and textile waste.
Impact on Shein, Temu and other low‑cost sellers
Chinese‑owned platforms Shein and Temu are the primary targets of the new regime. Neither company responded to requests for comment, but Shein’s French spokesperson, Quentin Ruffat, previously warned that the fees could push prices higher for shoppers.
Shein’s prospectus shows the company offered more than 2 million distinct items as of March 31, adding roughly 4,700 new apparel styles each day. The penalties are expected to increase further after 2030, putting additional pressure on the business model that relies on rapid turnover of low‑priced goods.
European retailers largely exempt
Established European fashion chains such as Inditex’s Zara and H&M, which maintain smaller online assortments, are not expected to feel the impact of the new fees, according to a briefing from French officials.
Compliance with EU textile‑waste rules
Under European Union regulations, each member state must maintain an Extended Producer Responsibility (EPR) system that collects fees from textile producers. Those funds are used to finance the collection, sorting, and recycling of discarded clothing. In France, a newly created organization will collect the fast‑fashion penalties from the importer or manufacturer responsible for the violation.
International reaction
China’s commerce ministry labeled the French law discriminatory and a potential trade barrier, suggesting it could conflict with World Trade Organization principles. The French government, however, argues the measure is a necessary step to protect the environment and ensure fair competition for domestic producers.
As the penalties take effect, French consumers may see modest price increases on the cheapest garments, while the broader goal remains to encourage more sustainable production practices across the global fashion industry.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.