France has ignited a global alert by passing legislation that directly targets platforms such as Shein and Temu, world leaders in ultra-low-cost e-commerce. With a model based on accelerated production, massive advertising and almost unbeatable prices, these companies have won consumers, but also raised criticism for environmental, labor and commercial practices. Now, the French government seeks to make these operations less advantageous, imposing specific fees, fines and restrictions.
Among the measures already taken, the €40 million fine imposed on Shein for misleading offers and unproven environmental claims stands out, according to the report Wall Street Journala new law passed by the French Senate in June 2025 provides for environmental fees of up to €10 per piece sold by 2030 and prohibits influencers from promoting ultra-fast fashion products.The official justification is to reduce environmental impact and curb hyperconsumption, but experts also see a political movement to protect the local industry and respond to growing pressure from climate and labor rights entities.
The French strategy also acts on another front: to hinder the logistics model that sustains the cost advantage of these applications. The government has proposed to the European Union to charge fees on packages of less than €150, currently exempt.As Temu and Shein rely heavily on small international shipments to escape conventional taxation, the measure can dramatically reduce their competitiveness.Also, Alibaba, owner of Temu, faces EU investigations on data transparency and consumer safety, which increases regulatory pressure on Chinese bigh.
The central question is whether these platforms will be able to adapt their business model to a tighter regulatory environment. Although Shein has promised to invest €13 million in compliance and safety, doubts still remain about their ability to operate at the same margins when faced with tougher environmental, fiscal and commercial rules. Analysts warn that the success of these platforms is largely based on the fragility of regulatory systems and that when these loopholes close, the price advantage may disappear.
According to Rebecca Fischer, Co-founder and Chief Strategy Officer (CSO) by Divibank. More than a trade dispute, what is at stake is the very future of digital consumption. “France offensive signals a desire to redesign the rules of global e-commerce, raising the social and environmental costs of what was once sold as affordable and democratic. For Chinese brands, the challenge is clear: either reinvent their operation to meet new international requirements, or they will see their global expansion slow down.At the end of the day, the consumer, attracted by low prices, will have to decide how much he is willing to pay for convenience & how much he demands on responsibility”, he says.
