FRENCH PARLIAMENT PASSES FAST-FASHION LAW TARGETING SHEIN AND TEMU

France's Senate passed legislation on Monday intended to restrict the operations of ultra fast-fashion retailers including Shein, Temu and AliExpress. The bill followed more than two years of negotiation between the upper and lower houses of the French parliament. Under the new law, companies operating in the ultra fast-fashion sector face financial penalties based on the volume of products sold.

The penalties established by the legislation range from €0.25 to €6 per product during the current year. These fines are scheduled to increase significantly over time, reaching as high as €10 per product by 2030. The graduated penalty structure creates financial incentives for retailers to reduce their sales volumes or cease operations within France.

The passage of the bill marks the conclusion of an extended parliamentary process focused on controlling the expansion of rapid-turnover clothing retailers in the French market. The legislation represents an attempt by French lawmakers to address concerns associated with the business model employed by these companies. No further legislative steps were specified in the available information.