France targets Shein and Temu with fast fashion fines

France is implementing fines against fast fashion retailers such as Shein and Temu in an effort to reduce the surge in cheap clothing sales. These penalties, part of a law passed in June, target environmental concerns related to overproduction and range from €0.25 for items like boxer shorts or socks to €12 for a coat. The fee is capped at 50% of the product's pre-tax sales price.

The announcement comes as Shein's stock market debut in Hong Kong faced challenges due to the end of duty-free access for cheap e-commerce parcels in the EU and US. Shein and Temu have not commented on the fees. European retailers like Zara and H&M, with smaller product ranges, are reportedly unaffected. The fines, which will increase from 2030, are calculated based on factors like the number of products sold, their prices, and repairability.

China's commerce ministry has labeled the French law as discriminatory and potentially a violation of WTO principles.