Shein hit with second major charge as France pursues $174M fine

France’s data privacy regulator, the Commission nationale de l’informatique et des libertés (Cnil), is seeking a €150 million ($174 million) fine against Shein for violating laws governing the use of cookies—digital trackers used for targeted advertising.

The recommendation came Thursday from the Cnil’s appointed rapporteur, who accused the Chinese fast-fashion giant of “multiple breaches” of legal obligations regarding user consent and the proper handling of cookies.

During an inspection on August 10, 2023, the regulator found that Shein’s website installed advertising cookies without obtaining users’ consent, or did so using unclear and misleading consent collection methods.

“The cookie refusal process was flawed,” the rapporteur said. “Even when users opted out, cookies requiring consent were still being stored and read.” The report also pointed to “a concerning level of negligence” by the company, which “has both the technical and human resources to comply.”

While earlier proposals included a $116,000-per-day penalty, the rapporteur indicated that this was no longer being pursued, noting that Shein had “recently taken steps to come into compliance.”

In a statement sent to AFP, Shein said: “Since August 2023, we have actively cooperated with Cnil to ensure compliance and respond to its questions. Today’s restricted hearing is part of that ongoing process.”

Shein’s attorney, Sonia Cissé, criticized the proposed fine as “completely disproportionate,” arguing that the regulator’s restricted committee—the body responsible for imposing sanctions—had overreached.

Cnil’s final decision is expected in the coming weeks. The rapporteur has requested that the ruling be made public.
This latest action follows a €40 million ($46 million) fine issued on July 3 by France’s consumer watchdog, the DGCCRF, which cited Shein for “misleading commercial practices.”

($1 = €0.86)

With reporting from AFP.