France Takes Firm Stance Against Shein Over Regulatory Violations

In a significant escalation of regulatory pressure, French Trade Minister Serge Papin has taken a firm stance against fast-fashion giant Shein, refusing to meet with the company's executive chairman and emphasizing that compliance with French law is non-negotiable. The confrontation comes as French authorities pursue legal action that could lead to the platform being blocked in France over serious regulatory violations.

Government's Unwavering Position

Minister Papin made his position clear during an interview on France's RMC radio, stating unequivocally: "For now, I have absolutely no intention of meeting him. We have to be firm. We have to protect ourselves." The minister was referring to Donald Tang, Shein's executive chairman, who had sent a letter to the French government on Wednesday pledging to "respect all French laws" and requesting a meeting to discuss compliance matters.

The French government's position extends beyond the trade ministry. Amélie de Montchalin, France's minister for public accounts, also rejected Shein's request for a meeting at Bercy, where the Finance Ministry is located. This unified government response underscores the seriousness with which French authorities are treating Shein's regulatory violations.

Legal Proceedings and Compliance Deadline

French authorities have taken concrete legal steps against Shein, asking courts to block the platform's website in France to "put a stop to the serious damage to public order caused by its failings." According to sources close to the case, this represents an expedited application on the merits to the president of the Paris judicial court, with a decision expected within days.

The government has given Shein until Friday evening to bring its site into compliance under a 48-hour procedure launched on Wednesday and supervised by the Répression des Fraudes (DGCCRF), France's consumer protection agency. This tight deadline reflects the urgency French authorities attach to resolving the platform's compliance issues.

Serious Regulatory Violations

The regulatory action follows multiple serious violations discovered on Shein's platform. The Paris public prosecutor's office opened an investigation on Monday following the sale of sex dolls depicting little girls. Additionally, authorities identified Category A weapons, including machetes and knuckledusters, being sold through the platform.

In response to government pressure, the Singapore-based group has taken some corrective measures. Shein has "temporarily" suspended sales on its French site by third-party sellers, as well as sales of Shein products outside the clothing sector. Minister Papin acknowledged that "today's Shein is not at all the Shein of Wednesday" because of these measures, but indicated that more fundamental compliance issues remain.

Customs Crackdown Reveals Additional Problems

Further evidence of compliance issues emerged during a customs "crackdown" carried out on Thursday at Roissy–Charles de Gaulle airport north of Paris. Customs officials opened all Shein parcels and discovered products "not up to standard" and sometimes "intended for illicit trafficking," according to Minister Papin.

European Union Coordination

The French government is coordinating its response with European Union authorities. French Minister for Foreign Affairs Jean-Noël Barrot called on the European Commission to "crack down" and sanction Shein, which he described as "clearly in breach of European rules." The EU has indicated it shares France's concerns and is taking the matter "very seriously," according to Commission spokesperson Thomas Régnier.

French Economy Minister Roland Lescure and his colleague Anne Le Hénanff have also written to the European Commission calling for "firm responses to Shein's repeated failings." They noted that platforms face potential penalties of "up to 6% of the platform's worldwide turnover and measures suspending its activity" for serious violations.

Broader Implications for E-commerce Regulation

Minister Barrot highlighted the broader regulatory challenge, lamenting that "we have allowed large platforms whose rules are set by Chinese and American billionaires to flourish, disrupting the nation's economic, social, and democratic life." This statement reflects growing European concerns about the power and regulatory compliance of international e-commerce platforms.

Despite the regulatory challenges, Shein continues to expand its physical retail presence in France. Nearly 8,000 people attended the opening of Shein's first permanent store worldwide at the BHV department store in Paris on Wednesday, with five additional French stores planned to open shortly.

The confrontation between France and Shein represents a significant test case for how European governments will regulate international e-commerce platforms that fail to comply with local laws and standards. The outcome could set important precedents for future regulatory actions against similar platforms operating in European markets.