PARIS — After the hotly contested opening of Shein‘s first physical retail store earlier this month, French fashion and retail groups are turning up the heat on the Chinese ultra-fast-fashion giant.
In a landmark move, 12 French retail federations, alongside several big brands, have launched legal proceedings against Shein’s Ireland-based European subsidiary, Infinite Styles Service Co. Ltd.
The federations’ legal action against Shein seeks to stop unfair competition and ensure compliance with European product safety standards, leveling the playing field for French retailers. It also aims to put a price on the economic harm to the sector as well as potentially recover damages, as well as set a legal precedent for regulating global e-commerce platforms operating in Europe.
Related Articles
The groups say that Shein’s aggressive pricing, rapid product turnover, decentralized production model and labor practices, coupled with its noncompliance with European safety standards, has created an unlevel playing field for French fashion brands.
You May Also Like
According to coalition estimates, these practices may have cost French companies as much as 3 billion euros. Sources clarified that this figure is a gauge calculated from financial modeling including revenue projections and market share estimates, rather than an official audit.
The number is used to illustrate the scale of what the federations describe as a “systemic issue” that has crushed the domestic retail industry, resulting in several high street brands going into bankruptcy.
Alliance du Commerce president Bernardi Cherqui said that 2 million parcels arrive in France a day from Chinese platforms including Shein, Temu and Aliexpress. The number “has quadrupled over the past three years,” he said, adding that number has accelerated since the U.S. scrapped its de minimis rule in May and Chinese companies have sought out new markets for their goods.
“This unfair competition from China and other platforms represents a systemic threat to commerce in France in the coming years. The consequences are clear — the weakening of companies, the disappearance of tens of thousands of jobs, and the erosion of local economies. Commerce is about territory, and this threat endangers it,” Cherqui said.
He said the commercial vacancy rate now stands at 11 percent for fashion, “a sector particularly affected,” due to low-cost clothing available online, and that 23,000 jobs in the sector have been lost over the past five years.
“This context underlines the urgency of our action and the need to defend a fair, safe and sustainable retail environment,” he said.
The suit targets Shein’s European operations for allegedly selling non-compliant products and business practices the groups deem “systematically unfair,” putting French retailers on the back foot as they are required to invest in compliance with increasingly stringent environmental regulations.
“Shein on the contrary gains market share by systematically circumventing rules and also reducing all their costs,” Cherqui added.
“We have learned that several federations and brands are launching a lawsuit alleging unfair competition against our company. These claims are without merit. We regret that these parties have chosen to pursue litigation rather than engage in any constructive dialogue,” a spokesperson for Shein told WWD.
“Such an initiative resembles a boycott more than a genuine legal challenge, and runs directly counter to the spirit of French and European competition law to protect innovation and consumer choice, not to suppress them. As they arrive, we will review these matters with our legal advisers and will take appropriate steps to defend our interest,” the spokesperson added.
“This is about defending fair competition and protecting employment, not about opposing foreign brands per se, whether Chinese, Australian, or otherwise, it doesn’t matter. It is directed against an economic model that today is completely unfair,” said Marc Lolivier, president of the FEVAD e-commerce federation.
The coalition spans French fashion and retail, including groups representing women’s ready-to-wear, lingerie, swimwear, jewelry, watches and textiles. Retailers such as Monoprix, Promod and Pesson, collectively representing over 60 corporate entities, are publicly backing the action, while others remain anonymous.
Shein’s European operations are run through its Irish subsidiary, making them subject to French courts, which can enforce provisional measures such as suspending the platform.
The distinction between Shein and other e-commerce platforms, such as Temu, is central to the case. Shein’s vertically integrated model of selling its own-brand products places it under French consumer protection and unfair competition laws. Other platforms such as Alibaba and Temu operate solely as marketplaces, which fall outside of the scope of this suit.
French authorities have already conducted a major customs inspection, opening every Shein package entering the country over a 24-hour period, and reportedly finding multiple products that fail to meet regulatory standards.
The coalition said that the legal action is designed to send a message that even online retailers headquartered abroad must follow local laws. In France, past actions — such as the temporary suspension of Wish in 2021 over safety concerns — demonstrate that decisive enforcement can be done.
The legal action could have a potential ripple effect across Europe. EU regulations such as the Digital Markets Act and the Digital Services Act, both of which aim to limit the economic dominance of large platforms and the online distribution of illegal content and products, provide additional legal leverage.
Shein, which is already in the sights of the French Parliament, may now face increased oversight and legal pressure to adapt its European operations. Other countries could follow the French coalition, or an EU-level initiative could move to hold global e-commerce platforms accountable for business practices.
“What we want to have recognized is that freedom of trade only makes sense if it is fair, and it has not been for five years…and so we ask for repair of the damage,” said Cedric Dubucq of law firm Bruzzo Dubucq, which is representing the federations. “We are addressing the entity that is operationally responsible for the European market. This is not an attack on Shein as a brand globally, but on the practices deployed in Europe that undermine competition.”
Dubucq noted that the EU’s move to remove its own version of the de minimus exemption last week was “welcomed” by the groups, but not enough.
The case also highlights the evolving legal landscape for digital commerce, and could set a precedent for how ultra-fast fashion platforms operate in Europe.
With the Digital Services Act, the Digital Markets Act, and national consumer protection laws converging, authorities now have tools to address systemic unfair practices — especially by platforms operating across multiple jurisdictions. Coordinated action between national and EU-level regulators is expected to become increasingly common as e-commerce continues to grow.
Historical precedents, such as the temporary suspension of Wish, show that enforcement actions can significantly reduce the market presence of non-compliant players.
“This is historic because it brings together 12 major trade federations, marking the unity of our profession and trade actors,” added Cherqui. “It is unprecedented in the scale of the fight we are waging in defending trade based on respect for rules and consumer safety.”