Twelve French retail federations and several major brands have initiated legal action against Shein’s Irish subsidiary, Infinite Styles Service Co. They claim that Shein’s model “relies on non-compliance with regulations applicable to all players established in France” and aim to quantify the economic harm to the sector, potentially recover damages and set a legal precedent for regulating global e-commerce platforms operating in Europe.

The Conseil du Commerce de France (CDCF) is among those involved in the initiative, as are organisations representing various industries, including mass distribution (FCD), clothing and textiles (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).  Brands involved include Coopérative U, Promod, Monoprix, Grain de Malice (clothing) and Besson (footwear).

A Shein spokesperson already responded by saying to  WWD that “these claims are without merit”. “We regret that these parties have chosen to pursue litigation rather than engage in any constructive dialogue”. “Such an initiative resembles a boycott more than a genuine legal challenge and runs directly counter to the spirit of French and European competition law to protect innovation and consumer choice, not to suppress them”, he added. 

This “unprecedented” move marks an escalation that began when Shein opened its first physical retail space within the iconic BHV Marais department store in Paris, which is operated by BHV owner Groupe SGM

“This is about defending fair competition and protecting employment, not about opposing foreign brands per se, whether Chinese, Australian, or otherwise, it doesn’t matter. It is directed against an economic model that today is completely unfair”, argued Marc Lolivier, president of the FEVAD e-commerce federation.

As Shein’s European operations are conducted through its Irish subsidiary, the company falls under the jurisdiction of the French courts, who have the power to impose provisional measures, such as suspending the platform. Although the case hinges on the distinction between Shein and other e-commerce platforms, such as Temu – Shein sells its own products, whereas other platforms only act as intermediaries – the coalition said that the legal action is intended to send a message that online retailers based abroad must also comply with local laws.