Key Provisions of the Law
The new law imposes a multilayered framework of taxation, market constraints, and consumer-facing requirements. Central to the legislation is the introduction of a mandatory ‘eco-score’ for garments sold in France. Each product must disclose its environmental impact, including emissions, water usage, and recyclability. Items receiving low scores will initially incur a penalty tax of €5 per item, with the figure set to rise to €10 by 2030. This aims to eliminate the low-cost advantage underpinning Shein and Temu’s appeal by transferring environmental costs directly onto consumers.
The law also implements a ban on advertising for ultra-fast fashion brands. This covers all traditional media, including television, radio, and billboards, as well as digital platforms. Influencers are subject to penalties for promoting these brands—a first in global legislation. The ban is designed to cut off a major source of consumer engagement and limit visibility, which is seen as essential for maintaining high sales volumes in the sector.
Additional provisions include a tax on all packages shipped from outside the European Union, further weakening the viability of ultra-fast fashion’s overseas supply chains. The law also ends the practice of free returns, introducing a financial cost to consumers for a behaviour heavily incentivised by these platforms. Shoppers must now consider logistical and financial consequences before making bulk purchases.
Targeted Scope: Differentiating ‘Ultra’ from ‘Fast’
A late-stage amendment introduced by the Senate differentiates ‘ultra-fast fashion’ from the conventional fast fashion. This distinction allows the most severe penalties—particularly the advertising ban and highest tax brackets—to apply specifically to companies like Shein and Temu, explicitly named in legislative debate. In contrast, brands such as Zara, H&M, and France’s Kiabi are subject to lower eco-taxes and retain full advertising rights. This differentiation was framed by legislators as a move to shield domestic and European firms from collateral damage while focusing enforcement on actors perceived as disproportionately harmful.
Environmental and Social Rationale: The Data Behind the Decision
The legislative drive is grounded in data on fashion’s environmental and human toll. The UN Environment Programme has reported a doubling of global clothing production between 2000 and 2015, alongside a 36 per cent reduction in how long garments are worn. Approximately 92 million tons of textiles are discarded each year. Fashion contributes an estimated 8–10 per cent of global carbon emissions, more than international flights and maritime shipping combined. Shein and Temu’s operations exacerbate these impacts.
Social impacts are equally severe as the model relies on rapid, fragmented subcontracting, pushing pressure down the chain and echoing the dynamics that led to past industrial tragedies. Both Shein and Temu are also under scrutiny for sourcing materials from Xinjiang, raising concerns over links to forced labour involving Uyghur populations.
Criticism: Environmental Gap and Political Compromise
Environmental organisations argue the law does not go far enough. Critics point out that while Shein and Temu are being punished, the vast majority of fast fashion activity remains untouched. Pierre Condamine from Friends of the Earth France criticised the legislation as a missed opportunity, arguing that over 90 per cent of clothing sold and discarded in France comes from conventional fast fashion, not the ultra-fast segment. The concern is that political compromises to protect domestic retailers have narrowed the law’s impact, potentially undermining broader environmental goals.
Corporate Response: Legal Pushback and Strategic Options
Shein and Temu now face a strategic decision. They can attempt to comply by overhauling supply chains, investing in local infrastructure, and absorbing new costs. Alternatively, they may reduce operations or exit the French market altogether. Either path will set a precedent for how ultra-fast fashion adapts—or fails to adapt—under sustained regulatory pressure.
Looking Ahead: Enforcement and Broader Implications
A joint parliamentary committee will meet in September 2025 to finalise the legislative text. Full implementation depends on the establishment of enforceable eco-score metrics, tax collection systems, and mechanisms to monitor compliance. EU review remains a potential hurdle, but the law’s passage signals strong momentum for further regulation.
France has now positioned itself as a test case. Whether the measures lead to industry transformation or evasive restructuring will influence similar actions that are pursued elsewhere. The long-term success of the legislation may depend less on legal force and more on whether it can meaningfully shift consumer demand and corporate behaviour.
The global fashion industry is watching closely. What happens in France may define the future of fashion’s regulatory landscape.
ALCHEMPro News Desk (IL)
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