PARIS – France’s push to rein in Chinese ultra-fast fashion giant Shein hit another speedbump on Thursday, as an appeals court refused to suspend the company’s controversial third-party marketplace despite illicit products on the platform.
In the decision, judges upheld an earlier ruling from a Paris court, finding that a full suspension of the marketplace would be disproportionate, despite acknowledging “serious harm to public order” linked to the sale of illegal goods.
“Over the last several months, we have continued to significantly reinforce our controls for both sellers and products on our marketplace, to ensure that our consumers in France can enjoy a safe and enjoyable online shopping experience,” said a spokesperson for Shein in a statement issued to WWD. “Throughout this process, we have maintained a close dialogue with French and European authorities. Our priority remains the protection of consumers in compliance with the applicable laws and regulations.”
The case stems from a months-long legal battle between French authorities and the Chinese ultra-fast fashion retailer whose marketplace allows third-party vendors to sell directly to consumers. The dispute was triggered last fall following reports of prohibited items including child-like sex dolls and weapons being offered for sale on the platform, which coincided with the contentious opening of Shein’s first physical store inside BHV in Paris.
Days before the planned store opening, controversy erupted after reports that Shein had listed child-like sex dolls on its platform, prompting both public and political backlash as well as a judicial investigation.
At the time, French prosecutors said probes were also opened into AliExpress, Temu and Wish over content deemed pornographic or inappropriate for minors, with images circulating of an 80-centimeter doll holding a teddy bear accompanied by an explicit description.
The French government had initially sought the temporary closure of the entire site, later changing its request to a suspension of just the marketplace.
The courts twice sided with Shein, citing the company’s swift response, which included voluntarily shutting down its marketplace in France, auditing listings and implementing corrective measures before gradually relaunching the platform earlier this year.
However, the court did order Shein to suspend the sale of certain adult products without robust age-verification systems — a category representing only a small portion of marketplace activity.
Following the contentious Paris opening, Shein has continued to expand its physical presence in the country, opening shops-in-shop in five regional BHV department stores outside of Paris ranging from 5,400 to 11,000 square feet.
Separately, a parcel tax targeting online sellers such as Shein, Temu and Wish came into effect last month, imposing a 2 euro fee per product category within each shipment in a bid to slow consumption of ultra-cheap fashion and goods. However, reports suggest Shein has rerouted its air freight through Belgium, using truck deliveries for final distribution to bypass the charge.
Meanwhile, a coalition of 12 French retail federations, alongside several big brands, have sued Shein’s Ireland-based European subsidiary, Infinite Styles Service Co. Ltd., to stop unfair competition and ensure compliance with European product safety standards, leveling the playing field for French retailers. It also aims to put a price on the economic harm to the sector as well as potentially recover damages, as well as set a legal precedent for regulating global e-commerce platforms operating in Europe.
