The French authorities imposed a new multibillion-euro fine on the Chinese e-commerce platform Shein, intensifying pressure on one of the largest ultra-fast fashion companies in the world due to irregularities related to consumer rights and the information provided to buyers.
The French Directorate General for Competition, Consumer Affairs and Fraud Control announced on Wednesday a sanction of approximately 22 million euros against the company. According to the regulatory body, the company committed various violations related to order confirmation processes, product returns, and environmental information offered to users.
The fine is divided into 16.7 million euros for issues related to purchase confirmation and another 5.8 million euros for non-compliance associated with return procedures and the presentation of information about the environmental quality of certain products.
The sanction represents a new episode in the growing confrontation between French authorities and the popular platform of Chinese origin, which in recent years has gained millions of customers in Europe thanks to its extremely low pricing strategy and a massive offering of clothing, accessories, and home goods.
The Macron government imposed a multimillion-dollar fine on Shein for allegations related to misleading information and the company's logistical issues.
In response to the decision, Shein described the sanctions as excessive and announced that it will formally appeal both resolutions. The company stated that the reported violations correspond to technical issues that have already been corrected and assured that they did not have a significant impact on consumers.
''Technical problems, with no consequences for consumers and already resolved when necessary, have served as the basis for an exceptional sanction,'' a company spokesperson said in a statement.
However, the French government has progressively hardened its stance against the platform. Authorities believe that the detected irregularities are part of a broader pattern of questionable practices that justify stricter oversight of the company's operations.
The new fine adds to another sanction imposed in July, when France ordered Shein to pay 40 million euros for deceptive practices related to promotions and discounts. On that occasion, regulators concluded that some promotional prices did not adequately reflect the discounts advertised to consumers.
The Chinese company announced that it will seek to challenge the court decisions that require it to pay the large sum of money.
In addition to the economic sanctions, French authorities attempted to temporarily suspend the company's ''marketplace'' activities. However, the Paris Court of Appeals later rejected that measure, allowing the platform to continue operating in the country.
Scrutiny of Shein significantly increased late last year following an investigation by consumer protection agencies. According to authorities, the platform offered products considered problematic, including child-like sex dolls and items classified as prohibited weapons under French law.
As a result of these findings, the French minister in charge of small and medium-sized enterprises, Serge Papin, warned that the government will maintain constant vigilance over such digital platforms.
''Since that discovery, we have decided not to leave these platforms alone and will continue to act until they completely change their practices or leave our market,'' the official stated in a post shared on the social network X.
The French Minister of Small and Medium Enterprises assured that the French government will maintain strict control over the platform.
The Shein case occurs in a context of growing concern in Europe about the operation of large international e-commerce platforms. Various European governments have expressed concern over issues related to product safety, transparency of commercial information, compliance with environmental standards, and consumer protection.
Despite the controversies, Shein continues to be one of the fastest-growing e-commerce companies globally. Its business model based on rapid production, extensive catalogs, and low prices has allowed it to establish a significant presence in numerous international markets.
