Penalties in France are part of a law passed in June and range from 0.25 euros for small items (such as socks) and up to 12 euros for larger pieces (such as coats).
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01/09/2026
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News to Minute, Lusa
Ffrom tuesday, september 1st, a system of penalties aimed at the fast fashion and predict rates of up to eur 12, for example, by piece of clothing from Shein or Temu.
According to Reuters, penalties are part of a law passed in june 2026 and vary between 0.25 euros for small items (such as socks) and up to 12 euros for larger pieces (such as coats).
However, the total value of the fine may not exceed 50% of the pre-tax price of the product.
The measure, refer to, should mainly affect large online trading platforms – such as Shein or Temu – that have millions of products available online and launch thousands of new articles a day.
Reuters indicates that European retailers such as Zara or H&M will be less impacted by the measure as they have a more limited online offer.
Shein shares sink more than 9% at the Hong Kong premiere
The actions of the fashion giant ‘online’ Shein more than 9% have fallen today in the first few minutes of trading on the Hong Kong Stock Exchange, a debut that evaluated the company at around €22.600 million.
The securities even negotiated around $44 from Hong Kong (EUR 4,84), below the price of $48.56 from Hong Kong (EUR 5,34) fixed for the initial public offer (IPO).
The company placed 280 million shares on the market and captured some 13,600 million dollars from Hong Kong (almost 1,500 million euros), in what was one of the most anticipated stock exchanges of recent years in the Chinese special administrative region.
The operation valued Shein at just over $26,000 million (EUR 22,390 million), about a quarter of the nearly $100,000 million (EUR 86,000 million) allocated to the company in a private financing round held in 2022.
Founded in China in 2012 and currently based in Singapore, Shein indicated that it intends to use most of the funds raised to strengthen technological capabilities and expand international presence.
The Hong Kong quotation came about after unsuccessful attempts to enter the New York Stock Exchanges in 2023 and London in 2024, facing regulatory obstacles and political opposition related, among other factors, to the scrutiny of the company's supply chain in China.
The platform received, in early July, the approval of the Chinese market regulator to advance the Hong Kong quotation.
Shein has become one of the world’s leading ‘ultra fast-fashion’ companies, a model based on the continuous launch of new collections at reduced prices and promotion through social networks, especially among younger consumers.
Despite being based in Singapore, the company maintains much of the supply chain in China, benefiting from the size of the textile industry and the country's logistics network.
The platform sells products in more than 150 countries and claims to have 273 million customers.
In 2025, Shein recorded revenues of USD 41,800 million (about EUR 36,000 million), delivered more than one billion orders worldwide and made a net profit of USD 2,100 million (EUR 1,800 million).
The company did, however, enter red earlier this year by recording net losses of USD 99 million (EUR 85 million) in the first quarter.
In the initial public supply prospectus, Shein recognised that it could not guarantee investors the maintenance of high growth rates in the first years of expansion.
The company also faces a more adverse commercial and regulatory environment in some of the main markets.
In 2025, the United States eliminated the customs exemption for low-value orders, significantly increasing the tax burden on the sales of the platform.
In the European Union (EU), Brussels introduced in July a fee of EUR 3 for each product category included in small orders from third countries, which particularly affects platforms that directly ship goods from China.
European imports of small orders, including from China, fell by between 30% and 40% after the entry into force of the measure, according to data from French customs released at the end of August.
In France, where Shein has around 23 million customers, an environmental penalty on ‘ultra fast-fashion’ products has also come into force today, which could reach EUR 19.50 per piece in 2030, up to a limit of 50% of the price of the product before tax.
The platform has been criticized for the environmental impact of its business model, based on the rapid renewal of collections and the marketing of large volumes of clothing at low price.