What: French retail associations and brands are taking Shein to court, alleging systemic unfair business practices.

Why it is important: The move signals a turning point in the retail sector’s response to unfair competition, building on recent fines and public backlash against Shein’s business model.

A coalition of over 100 French brands and 12 retail federations has initiated a landmark legal action against Shein, accusing the fast-fashion giant of systemic unfair competition. This unprecedented move follows years of mounting frustration among traditional retailers, who have witnessed Shein’s rapid growth in France, marked by a surge in imports and aggressive market tactics. The coalition cites a pattern of illegal practices, including misleading advertising, non-compliance with product standards, counterfeiting, and serious breaches of data protection laws. These actions, they argue, have destabilised the French retail landscape, threatening thousands of jobs and undermining local businesses. The legal case, coordinated by prominent industry associations and legal experts, seeks both compensation for damages and an immediate halt to Shein’s contested practices. The initiative is seen as a critical response to the perceived erosion of fair competition, with the potential to reshape the regulatory environment for digital platforms operating in France. The outcome could set a precedent for similar actions in other markets, reflecting a broader industry pushback against disruptive e-commerce models.

IADS Notes: In November 2025, Shein’s expansion into French department stores provoked strong opposition from lawmakers and retailers, leading to regulatory fines and coordinated campaigns to block its growth (“Inside Shein’s fast-fashion fight in France,” BoF, Nov 2025; “Inside Shein's Paris store opening: Huge lines, protests — and prices that surprised shoppers,” Business Insider, Nov 2025). The €40 million fine for deceptive pricing in July 2025 (“Shein fined €40m for deceptive pricing in France,” Fashion Network, July 2025) and the expulsion of brands like Pimkie from retail associations in September 2025 (“Pimkie expelled from French retail associations,” Fashion Network, Sept 2025) illustrate the escalating financial and reputational risks for Shein. The operational turmoil surrounding Shein’s Paris store opening, including staff protests and the withdrawal of local labels, further underscores the industry’s determination to defend market fairness and resist disruptive business models.

Shein: 100 French brands and 12 federations launch legal action for unfair competition