Advertising Ban and Environmental Tax: France Takes on Temu and Shein
France is intensifying its fight against ultra-fast fashion, targeting Chinese platforms like Shein and Temu with an advertising ban and an increasing environmental tax by 2030.
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France is tightening its approach against ultra-fast fashion and is specifically targeting Chinese platforms like Shein, Temu, and Aliexpress. An advertising ban and an environmental tax that will increase to up to ten euros per item by 2030 aim to make the business model less attractive.
After the French government had already adopted stricter measures against fast-fashion providers like Temu and Shein compared to the rest of Europe two years ago, the French Parliament has now passed a next step that is unique and more than unusual in Europe: a product-related advertising ban combined with a product-related environmental tax.
The law, which passed the Senate this week, specifically includes an advertising ban for fast-fashion products, which also extends to influencers and similar special advertising forms. Furthermore, ultra-fast fashion providers will be required to display information on their websites and on products regarding more moderate consumption, reuse, and repair. However, it remains to be seen whether the information about environmental impacts will change customer purchasing behavior.
In line with this – and this could be a significantly stronger lever – an appropriate environmental tax will be imposed, increasing to a maximum of 10 euros per item by 2030. However, the respective penalty payment may not exceed half of the net selling price. The funds are explicitly intended to flow into ecological recycling.
Selective Perception Regarding Retail Chains
The law explicitly targets Chinese platforms like Temu, Shein, and Aliexpress, while European fast-fashion providers like Zara or H&M apparently do not fall under this regulation at present. It applies when a company launches an exceptionally high number of products at such low prices that repairing them is not worthwhile.
This vague wording has been criticized by environmental activists like Green MP Charles Fournier: "Under the weight of lobbyists, the text has lost ambition. Zara, H&M, and Uniqlo are not role models for sustainable fashion either." However, one must distinguish between the usual European cheap fashion chains and those Chinese platforms that present thousands of new goods daily. According to evaluations, Shein temporarily listed an average of around 6,000 new items or product variants online per day.
Fast-Fashion Providers Should Be Held Accountable for Ecological Damage
Whether France's initiative, which has been combating Chinese fast-fashion providers for two years, will serve as a model for other EU countries remains to be seen. France has recently abolished a package fee of 2 euros that had been in place since March. In its place, the EU-wide customs import fee for small shipments of 3 euros, which has also been in effect in Germany since July, is now applicable.
The aim of the measure is to hold ultra-fast fashion retailers and manufacturers accountable for economic and ecological damage. In the past, it has been regularly criticized that a high percentage of goods do not meet the standards commonly accepted in Europe.
However, whether France's measures are in compliance with EU law remains to be seen. Since member states cannot unilaterally regulate entire industries, France will need to obtain approval from the EU for the restrictions concerning each specific company that falls under the regulation. It is also unclear whether the associated bureaucracy (and the expected backlash) will render the new measures functional.
