Shein Faces New Challenge as France Proposes $150 Million Fine

Shein, targeted by the French authorities. The Asian ecommerce company has received a new proposed fine in France, this time from the country’s National Commission for Information Technology and Liberties (Cnil), which is responsible for ensuring the protection of user data. After a first sanction last week, the company could face another fine of up to €150 million.

The French regulator has accused Shein of using personalized cookies without consumers having given their consent for this type of fingerprint tracking, something that is not allowed within the European Union. The complaint further adds that in an investigation conducted in 2023, the company continued to track user information even when users refused cookies.

The penalty follows the fine Shein received last week of another €40 million. In this case, the Asian giant was accused by the French antitrust office for carrying out misleading advertising about the discounts it offered on its website.

Shein received last week a first fine of €40 million 

Just as happened with this first fine, the company has defended that it is working hand in hand with the Cnil to ensure compliance with the Welsh laws, and answer possible doubts about the accusation, according to statements collected by AFP. In parallel, however, the Asian giant has described the amount of the penalty as “disproportionate”.

The entity, for its part, has defended that Shein has both the technical and human resources to comply with the regulation, which demonstrates the company’s negligent behavior. Whether Shein will have to face this new sanction will be definitively known in the coming weeks.

Beyond the financial penalties, the Asian ecommerce giant is under intense scrutiny in the country, especially after the law against fast fashion recently passed by the French Senate. The text, already baptized as the anti-Shein law, makes explicit references to the Asian company’s business and links it directly to a negative impact on the environment and the rest of the country’s companies.