Shein Faces French Ban, Puts Third-Party Transactions on Hold

The French government is initiating a suspension procedure against the Chinese platform Shein, in the midst of a scandal over the sale of child-like sex dolls on its marketplace. The measure, announced Wednesday by the Ministry of Economy, seeks that the company demonstrates its compliance with French law, according to a statement released by Matignon.

The decision comes on the same day that Shein has opened its first permanent physical store in the world, located in the BHV Marais department store in Paris. The ultra fast fashion giant has raised the shutter on its space located on the sixth floor in one of the most emblematic centers of the French capital. The context for the physical landing of the platform is of strong political and social tension for weeks, during which the opposition of the French ready-to-wear industry has shown its firm opposition. In recent days, the scandal over the sale of illicit products has escalated the controversy, taking the cause to another level and putting pressure on the government of Emmanuel Macron.

The official statement specifies that the instruction comes directly from the French Prime Minister. “By order of the Prime Minister, the Government initiates the procedure to suspend Shein for the time necessary for the platform to demonstrate to the authorities that all its contents finally comply with our laws and regulations,“ the text states. The announcement also coincides with the public scrutiny of the platform. In recent hours, the marketing of weapons such as machetes and American fists has also been denounced.

The Executive added that “a first monitoring point should be held in the next 48 hours” to evaluate the measures taken by the company. The initiative is part of the policy of control of foreign platforms promoted by the French Government in view of the proliferation of cases of non-compliance with regulations.

The French government has stopped Shein’s online operations for “as long as necessary”.

The launch of Shein’s physical store in the BHV coincides with the tightening of surveillance on the company. Founded in 2012 in China and headquartered in Singapore, Shein has already been fined a total of €191 million in France for violations related to cookie legislation, misleading advertising and lack of information on plastic microfibers.

The Chinese company also accumulates accusations of unfair competition, environmental impact and poor working conditions in its supply chain. Its arrival in the center of Paris, in a historic symbol of French commerce, has caused unease among national brands, trade unions and consumer associations.

The suspension procedure has received the backing of various political forces. “Sébastien Lecornu is right to initiate this suspension,“ Sébastien Chenu, vice-president of the Rassemblement National, told Bfmtv, denouncing the “European weakness” in the face of Chinese digital multinationals.

In parallel, several deputies are preparing a cross-cutting resolution in the National Assembly to ask Brussels for stricter regulation of low-cost fashion platforms.

Shein has reacted by temporarily suppressing third-party products.

In response to the government’s announcement, Shein has informed in a statement that it is temporarily suspending products from third-party sellers in France, which operate through its marketplace. “This measure allows for a thorough review to ensure full respect for French law and the highest standards in terms of consumer protection,“ the group said in its official communication.

Despite the regulatory pressure, Shein is maintaining its expansion plans in the country, with the planned opening of five additional stores in Angers, Dijon, Grenoble, Limoges and Reims, after the manager of the centers, SGM, has broken its agreement with Galeries Lafayette.