Network News Global

Where Every Story Matters

France Hits Shein With 22 Million Euros in New Fines
Business & Economy

France Hits Shein With 22 Million Euros in New Fines


PARIS – France’s consumer watchdog revealed Wednesday that it had hit Shein with fines totaling 22 million euros related to consumer information requirements, environmental disclosures and the presentation of online return rights.

The Chinese-founded, Singapore-based ultra-fast-fashion giant framed the fines as unfair and said it will appeal, even as it faces mounting scrutiny from regulators across Europe.

More from WWD

“We dispute these findings and consider the fines manifestly disproportionate,” the company said in a statement to WWD. “Throughout this process, there has never been any doubt about the fairness of transactions on our platform, or the quality and safety of the products and services offered. Not one instance of consumer harm has been established.”

The company said the Directorate General for Competition, Consumer Affairs and Fraud Control, or DGCCRF, is relying on an outdated interpretation of how modern e-commerce platforms operate.

The largest of the two fines, amounting to 16.7 million euros, hinges on what the DGCCRF said was a lack of information in confirmation emails, which failed to include legally required details such as product pricing, delivery times and seller information.

Shein said that all of this information was available through customers’ online accounts and updated in real time through its app and website.

“The DGCCRF has applied a 16.7 million euro fine on the grounds that information was not reproduced in a confirmation email, based on an excessively rigid and clearly outmoded interpretation of how customers access order information on modern digital platforms,” it said.

The company also framed this fine as “arbitrary” and based on a number of emails sent during a time period.

A second penalty of 5.7 million euros relates to the presentation of the distinction between France’s withdrawal rights and Shein’s own return policy, as well as the temporary absence of environmental information due to what the company described as a technical fault that had already been corrected by the company on its own.

“The scale of these sanctions is difficult to reconcile with the facts,” the statement said. “Taken together, it gives the impression of a penalty in search of a justification.”

Commerce Minister Serge Papin said the sanctions are part of larger concerns about “unfair competition” from platforms that fail to respect the same rules as domestic retailers.



Source link

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *