France takes aim at fast-fashion giants with new pricing penalties

The levy follows legislation passed by the French parliament earlier this year to regulate so-called "ultra-fast fashion" companies, known for selling large volumes of lower-quality clothing at rock-bottom prices.

It is part of a push to rein in Asian e-commerce giants including Shein, Temu and AliExpress, which have exploded in popularity in France in recent years.

"The harmful effects of ultra-fast fashion on our environment and our economy are well known and documented," said Mathieu Lefèvre, the minister for ecological transition, on Friday as details of the measure were published.

Under the legislation, ultra-fast fashion will be determined according to two criteria: the volume of clothing placed on the market and the cost of repairing garments relative to their purchase price.

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The per-item fee will vary on a set scale according to how each product scores against both criteria.

In 2026, companies will face charges including a 50-cent levy on underwear falling into the ultra-fast fashion category, rising to two euros for T-shirts, nine euros for jeans and €12 for a jacket.

The levy could reach up to €19.50 per item by 2030, though it will remain capped at 50 percent of the product's pre-tax price

A tool to collect data independently, rather than relying solely on companies' own declarations, is under development, Lefèvre's office said.

Criticism

Shein – which on Monday was valued at €22.6 billion in its long-awaited Hong Kong initial public offering – declined to comment when contacted by French news agency AFP.

Temu and AliExpress did not immediately respond to requests for comment.

The measure has faced criticism over which retailers it will affect.

In July, Lefèvre's office said the levy would not apply to retailers such as H&M or Zara, prompting some to say that the measure appeared to spare European and French companies.

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French officials have repeatedly identified Shein, Temu and AliExpress as driving the surge in ultra-fast fashion.

The European Commission has also raised questions over whether the legislation complied with EU law, but Lefèvre's office said those concerns had been "dispelled" and the measure was not expected to be blocked.

China, meanwhile, warned in July of potential retaliation over the French law, slamming the regulation as "discriminatory" and in violation of trade principles.

Imports of small parcels from China into the EU have already fallen by around 30 to 40 percent since a separate three-euro EU levy on such shipments came into force on 1 July, according to the French government.

(with AFP)