France has become the stage for an intense battle between local retail heavyweights and Asian eCommerce giants. A coalition of more than 230 brands and 16 industry federations, led by the French Trade Council (CDCF) and the French Trade Confederation (CCF), has openly declared war on Shein, Temu, and AliExpress.
The petition, sent on June 3rd in the form of a public letter to the Executive, brings serious accusations to the table such as non-compliance with European regulations, promoting uncontrolled consumption, environmental pollution, and a competition deemed “unfair.” According to the signatories, these platforms would be operating outside the rules, and it is time for them to face the same requirements as local merchants.
The signatories demand that the available measures be immediately applied: notification, warning, déréférencement and blocking if necessary. This concept, known as déréférencement, involves the removal of a website from search engines or marketplaces (similar to what is known in Spain as the “right to be forgotten”) and it would not be the first time it is applied: in 2021, the DGCCRF (The French Directorate General for Competition and Consumer Protection) decided to apply it to the popular eCommerce site Wish.
As merchants explain in their public letter, “the legal framework exists, the way is clear. It is time to resume it.”
According to European surveys cited by the CDCF and the CCF, the vast majority of products sold by these platforms do not comply with current EU regulations: “These Chinese online sales platforms are no longer marginal: they flood the French market with millions of low-priced products, often uncontrolled, to the detriment of safety, transparency, and fairness. Investigations conducted by European authorities reveal that between 85% and 95% of products offered on Temu, Shein, and AliExpress do not comply with EU standards“.
And it is not just a matter of misplaced labels: according to their explanations, up to 66% of the products analyzed have been classified as potentially dangerous.
But the indignation of small French merchants is not only due to the safety or labeling of the products marketed by these platforms. Furthermore, in their public letter, they accuse them of avoiding VAT, dodging customs duties, not adhering to sales schedules, and failing to comply with commercial transparency obligations. All of this, the retailers complain, places French actors who abide by the rules at a clear disadvantage.
“These platforms evade VAT, avoid customs tariffs, bypass sales periods, and violate labeling and commercial transparency rules. They gain an unfair competitive advantage to the detriment of French retailers, responsible markets, and SMEs that invest in regulatory compliance. The principle of fair commercial transactions, although enshrined in the French Consumer Code, is being trampled. This distortion of competition is unsustainable and economically destructive“, they explain.
In response to the accusations, Shein has assured the AFP agency that it will invest €13 million in 2025 to enhance the safety and compliance of its products. Of that figure, €2.5 million will be specifically allocated to quality testing, a 25% increase over the previous year. Additionally, the company has pointed out its collaboration with 15 internationally recognized testing agencies.
Meanwhile, the cabinet of Commerce Minister Véronique Louwagie has stated that the retailers’ request is being studied “with the utmost attention” and in close coordination with the relevant services.
This offensive is not new: the French Senate is examining a bill focused on curbing the excesses of “fast fashion” in the French market. The initiative contemplates, among other measures, the prohibition of advertising for companies like Shein, Temu, or AliExpress, financial penalties, and awareness campaigns about the environmental impact of their clothing.
Yann Rivoallan, president of the French Federation of Women’s Ready-to-Wear, has not hesitated to raise the tone: “I believe we must ban these companies outright”. He also questions how it is possible that consumers are still allowed to purchase dangerous products without any control, and suggests adopting a similar tax to that applied in the United States, where tariffs for these Asian actors recently exceeded 120%, although they were then reduced to 54%.
In fact, this is not the only problem these platforms face in Europe. As we informed you a few days ago, the European Commission has stepped up its vigilance over Shein, the rising star of ultra-fast fashion eCommerce, notifying it of a series of practices that violate EU consumer protection laws. This “warning” comes after an investigation led by authorities from Belgium, France, Ireland, and the Netherlands, along with the Consumer Protection Cooperation Network (CPC). The tactics questioned by Brussels would distort users’ purchasing decisions and violate key directives, including unfair commercial practices and consumer rights.
The European Commission’s dossier details six major fronts of non-compliance by Shein: fake discounts not based on actual previous prices, commercial pressure tactics such as countdown clocks, misleading information about return and refund policies, confusing labeling suggesting “extra” benefits when they are legal requirements, greenwashing with environmental claims lacking verifiable data, and opaque contact with no clear channels for consumers to lodge complaints. The CPC network is also evaluating whether Shein manipulates product reviews or fails to properly inform about its role as an intermediary in its marketplace.
Shein now has one month to present its arguments and corrective commitments. If the answers are not satisfactory, national authorities could initiate actions that include fines proportional to the company’s turnover in each affected country. For its part, Shein has shown its willingness to cooperate, stating that its priority is to “ensure that European consumers enjoy a safe, reliable, and satisfying online shopping experience.”
Moreover, just a few weeks ago, the European Commission proposed a two-euro fee for each package sent from outside the EU and valued at less than €150, something that would impact directly on the business model of these platforms focused on low-cost mass products.
As you can see, the legal, political, and commercial battle that is unfolding could mark a before and after for eCommerce in Europe. At stake is not only consumer safety or regulatory compliance but also the sustainability of local economic models against giants that have managed to exploit every crack in the system.
The coming months will be crucial to determine whether this French offensive remains a declaration of intent or ends up redefining the rules of the digital game at a European level.
Image: ChatGPT
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