On Wednesday, November 19, major French retailers and industry associations filed the first large-scale collective lawsuit in French commercial history against the Chinese fast fashion platform Shein, accusing it of engaging in unfair competition. The controversy surrounding Shein’s physical store in Paris and the Christmas activities of its partner department store BHV were subject to restrictions by the municipal government.
The Chairman of the Alliance du Commerce, Bernard Cherqui, announced the initiation of a collective lawsuit against Shein.
A total of 12 industry associations and over 100 brands/chains from various commercial and industrial sectors, including Promod and Monoprix, have joined this lawsuit.
Industry representatives listed various unfair competition practices allegedly conducted by Shein, including misleading advertisements, counterfeit products, violations of product safety regulations, and infringement of personal data protection.
The plaintiffs pointed out that Shein handles an average of 2 million parcels per day in France, and 80% of Shein parcels inspected by customs recently were found to be non-compliant. Retailers believe that Shein’s actions pose a “systematic threat” to the survival of the French retail industry.
The plaintiffs are seeking compensation for losses and an immediate cessation of illegal activities. Lawyers suggest that compensation amounts may be calculated based on the turnover of each company and Shein’s illegal profits, and public prosecutors may demand civil fines of up to five times the unjust profits from Shein.
The collective action is part of a lawsuit filed by lawyer Vincent de Carrière at the Commercial Court of Aix-en-Provence. De Carrière, appointed as the liquidator for the Olly Gan brand that ceased operations in the summer of 2024, is specifically targeting Shein for alleged unfair competition practices. A related hearing is scheduled for January 12 next year.
On the same Wednesday, the Paris municipal government imposed restrictions on the department store BHV due to the controversy surrounding Shein’s opening of a physical store there.
As the flagship company of the French department store group SGM, the Paris BHV department store was prohibited from holding outdoor Christmas activities such as Christmas tree and decoration displays, which differed from the customary practice in previous years.
Citing the “highly controversial background” of Shein’s store opening and concerns about the risk of disturbances in public places, the municipal government stated that the police chief believed that safety conditions were not met, hence preventing the closure of streets and continuation of activities.
The government also pointed out multiple violations by BHV, including unauthorized use of public spaces for installing Shein banners and furniture.
Earlier, the French Ministry of Finance initiated a process to suspend Shein’s French e-commerce platform due to the sale of quasi-child sexual dolls and prohibited weapons. Despite Shein’s withdrawal of the banned items, it remains under close monitoring.
While lawsuits in the French retail sector unfold, the EU and the USA are taking broader regulatory measures to combat the influx of cheap Chinese e-commerce imported goods.
EU officials stated last week that they hope to expedite the imposition of tariffs on small parcels entering the EU. These e-commerce platforms have been leveraging the EU’s “low-value exemption” policy for goods worth less than 150 euros to achieve cost-effective sales.
Last year, the number of low-value parcels entering the EU doubled to 46 million, with over 90% originating from China. This move is expected to directly impact online platforms such as Shein and Temu.
US President Trump signed an executive order on May 2, canceling the “small package duty-free” treatment for goods originating from China and Hong Kong valued at less than 800 US dollars.
According to data collected by the consulting firm Bain & Company, since President Trump announced comprehensive tariff imposition, the sales and customer growth rates of Temu and Shein have significantly declined.