In a move to curb the environmental impact of fast-fashion retailers like Shein in France, lawmakers have proposed a penalty system targeting these companies.
Under the legislation, retailers such as Shein, known for their rapid turnover of trendy clothing items, could face fines of up to €10 ($11) per item sold in France by 2030. Initially set at €5 per item, this penalty would double by the end of the decade, capped at 50 per cent of the sale price of each piece. The bill also aims to restrict advertising by ‘ephemeral’ fashion companies.
The legislation, which enjoys broad support, seeks to promote sustainable practices within the textile industry. It follows a recent European Parliament proposal mandating that producers cover the costs of collecting, sorting, and recycling textiles sold in the bloc. Additionally, the French government plans to prohibit textile waste exports, aiming to bolster domestic textile and retail sectors.
While proponents assert the bill's intention to support local industries and hold polluters accountable, critics, including Shein, argue that it unfairly targets budget-conscious consumers. The proposed penalties would be redistributed to French manufacturers deemed ‘virtuous,’ further incentivising sustainable practices.
In a bid for transparency, online retailers selling ‘disposable’ fashion would be required to disclose the environmental impact of their products. This move responds to concerns over the significant percentage of unsold textile items in Europe, attributed largely to returns and excess inventory.
The legislation's focus on fast-fashion retailers like Shein raises questions about fairness, especially regarding the differentiation between them and more established brands like Zara and H&M. French lawmakers estimate Shein introduces around 7,200 new products daily, potentially justifying the imposition of penalties to level the playing field.
Despite the bill's emphasis on foreign retailers, concerns persist about the practices of domestic companies like Decathlon. France's fashion industry has faced challenges from global competition, leading to the decline of traditional brands against the backdrop of outsourcing to countries with lower labor and material costs.
As Shein expands its presence in Europe through physical stores, it faces scrutiny not only in France but also in the United States, where regulatory hurdles loom over its planned listing. Similar concerns have arisen around other fast-fashion giants, such as Inditex, owner of Zara, highlighting a broader industry shift toward transparency and accountability.
