French retail groups sue online platform Shein over product safety, unfair competition
French retail groups sue online platform Shein over product safety, unfair competition
French retail sector unites against Shein
Major French trade federations representing sectors from mass market retail to clothing and toys are suing Shein for “unfair competition”. The Asian e-commerce giant, already under government scrutiny, described the move as a “boycott attempt”.
Several sector organisations stated in a press release that Shein’s model “relies on non-compliance with regulations applicable to all players established in France”.
Alongside the Conseil du commerce de France (CDCF), organisations joining the initiative include those representing mass distribution (FCD), clothing and textile industries (Alliance du commerce, FFPAPF, Ufimh, UIT, Fédération de la maille, de la lingerie et du balnéaire), jewellery (BOCI, UBH), toys (FCJPE), franchising (FFF) and online sales (Fevad).
Through this action of “unprecedented scale”, joined by around 100 retailers including Coopérative U, Promod, Monoprix, Grain de Malice (clothing) and Besson (footwear), federations and companies “affirm their determination to restore fair competition based on respect for the law”. “They also demand recognition of the economic damage suffered” by retailers established in France and “the granting of damages proportionate to these losses”.
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The case is being heard at the Aix-en-Provence commercial court. Shein’s Irish subsidiaries have already been summoned there for “unfair competition” regarding the judicial liquidation of local menswear brand Olly Gan. This was specified during a videoconference by Cédric Dubucq, the lawyer representing the federations and companies involved.
The latter “will intervene voluntarily” during a procedural hearing scheduled for January 12. This hearing will set the date for the examination of the case's merits. Dubucq estimated that damages to the injured companies are currently being evaluated and could reach “several hundred million or even several billion euros”. He also mentioned the possibility for the public prosecutor to request the payment of a “civil fine”, a measure newly permitted by law. Trade minister Serge Papin stated in a press release that this collective action is “very good news”. He added: “It proves that the sector will no longer let itself be pushed around.” “The French economy must resist models that jeopardise our values and our security,” Medef president Patrick Martin added.
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Regarding other e-commerce platforms, Alliance du commerce general director Yohann Petiot explained: “The message we are sending today is that impunity is over.” He views the summons against Shein as a “first step”.
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