Shein faces government crackdown in France as minister confirms ongoing investigations

The French government has sent a clear signal to the ultra-fast fashion sector. On July 3, Trade Minister Véronique Louwagie announced that Shein had been fined €40 million for deceptive business practices. Speaking at the annual event hosted by Alliance du Commerce—an organization representing 16,000 stores and 150,000 retail workers in France—Louwagie addressed an audience of retail chain and department store representatives in Paris.

During the morning’s discussions, concerns were repeatedly raised about the competitive imbalance posed by ultra-fast fashion players who operate outside the regulatory frameworks that European retailers must follow. The fine issued against Shein followed an investigation by the DGCCRF (Directorate-General for Competition, Consumer Affairs and Fraud Control). Louwagie added that “other investigations are underway,” although she declined to provide further details.

Responding to frustration within the retail sector over the perceived disparity in enforcement between domestic and foreign platforms, Louwagie announced new enforcement measures. “I’ve asked for stricter controls on foreign platforms—specifically, a threefold increase in product sampling to verify compliance,” she said. “We’re also implementing full-spectrum checks on all elements involved.” She noted that, in coordination with Customs Minister Amélie de Montchalin, a new protocol would ensure systematic information sharing between customs authorities and the DGCCRF regarding incoming parcels.

Louwagie emphasized that enforcement is also expanding at the European level. “At the end of 2024, we began verifying platform compliance with the Digital Services Act,” she explained. “A specific procedure has been initiated by the European Commission targeting Temu, and a separate investigation is underway concerning Shein. France, along with Germany and Ireland, is challenging multiple practices that violate EU regulations. Shein has 30 days to respond.”

Amid calls to replicate the 2021 delisting of the e-commerce site Wish, the minister acknowledged that such action remains an option. “Wish failed to comply with official injunctions, which led to its removal. While today’s platforms often respond to enforcement measures, I’m pushing the European Commission to revise the legal framework so that platforms can still be delisted under certain conditions—even if they cooperate.”

Highlighting the scale of the issue, Louwagie noted that 800 million parcels valued under €150 enter France annually, part of a broader influx of 1.5 billion parcels into the country and 4.5 billion across Europe. The stakes, she said, are high—not only in terms of consumer health and safety but also in protecting European businesses from unfair competition. She reiterated the government’s support for ending customs exemptions on low-value imports.

After months of scrutiny surrounding Shein’s business model and its impact on the local economy, the July 3 announcement marks a significant turning point. Whether it paves the way for lasting structural change across the industry remains to be seen.