France Fines Shein €22 Million Over Consumer Law Violations in Returns and Order Processes

Paris: France has imposed a fine of approximately €22 million ($26 million) on fast-fashion retailer Shein over violations related to return procedures, product information transparency, and order confirmation processes. The company has strongly rejected the decision, calling the penalty disproportionate and announcing plans to challenge it.

France’s Directorate General for Competition, Consumer Affairs, and Fraud Control (DGCCRF) said on Wednesday that it had levied €16.7 million for issues linked to order confirmations and an additional €5.8 million for shortcomings related to returns handling and environmental quality disclosures.

A Shein spokesperson stated that the penalties were based on “technical issues, with no impact on consumers and already addressed where necessary,” adding that the company “intends to strongly contest both sanctions in their entirety.”

This latest sanction adds to earlier regulatory action against the company. In July, French authorities fined Shein €40 million for allegedly misleading consumers with discount practices. Regulators had also attempted to suspend the company’s marketplace operations, but the move was rejected by the Paris Court of Appeals in March.

Shein, which has rapidly expanded globally by offering low-cost clothing, accessories, and gadgets, has faced increasing scrutiny in France since November. At that time, consumer watchdogs flagged prohibited items on its platform, including childlike sex dolls and banned weapons, intensifying regulatory pressure on the company.