bbieron@platformeconomyinsights.com

French Retailers and Brands Sue Shein Arguing Unfair Competition

Dec 1, 2025

Report from New York Times

In Brief – A large coalition of French retailers and brand owners has filed a class action lawsuit against Chinese ecommerce platform Shein, accusing the company of engaging in systematic unfair competition. The plaintiffs are seeking up to €3 billion in damages, arguing that Shein has lured consumers away over the past five years through allegedly deceptive promotions and by selling products that fail to meet French consumer protection and safety standards. French Retail Council president Bernard Cherqui, one of the parties to the litigation, called the company a “systemic threat” to domestic businesses, while Shein issued a statement rejecting the allegations as unfounded and saying that it regrets the shift toward litigation instead of dialogue.

Context – Shein, known for very low-priced fast fashion delivered directly to customers from factories in China, opened its first physical shop in Europe in a Paris department store in early November, drawing many shoppers and protesters. The French Finance Ministry quickly moved to block Shein’s website in France, alleging that officials had found illegal products, including “childlike” sex dolls and knife-style weapons for sale on the site. Shein responded by blocking all third-party sellers on its French platform, and the French consumer watchdog soon reported that illegal products were no longer on the site, leading to Finance Ministry proceedings to block the website being suspended, although a Paris prosecutor was continuing with a case to suspend the website for three months. Consumer advocates and traditional retailers in Europe have long complained about the sale of unsafe products on digital marketplace platforms, with Temu and Shein recently joining Amazon and AliExpress as top targets. The EU Digital Services Act (DSA) regulates how online marketplaces deal with illegal and objectionable products and content. The European Commission has engaged in DSA investigations of AliExpress and Temu, and there are calls for the commission to promptly open one against Shein, while a French grocery store chain CEO is calling for Temu and Shein to be banned from Europe entirely for two years while new rules to regulate them are crafted.

View By Monthly
Latest Blog
Dutch Regulator Opens Digital Services Act Investigation of Roblox

Report from NL Times In Brief – The Netherlands Authority for Consumers and Markets (ACM) has launched a formal Digital Services Act (DSA) investigation of Roblox over concerns that the online gaming platform may not be doing enough to protect children. The DSA...

EU Commission Moves to Stop Meta from Banning Chatbots on WhatsApp

Report from Wall Street Journal In Brief – The European Commission has informed Meta that it plans to block the company’s ban on third-party AI chatbots from operating over WhatsApp. The antitrust regulator has reached a preliminary finding that Meta’s policy could...

Department of Justice and State AGs Appeal Google Search Remedies Order

Report from Bloomberg In Brief – The US Department of Justice has announced that it notified the Federal Court of Appeals for the District of Columbia that it will appeal US District Judge Amit Mehta’s remedies order in the federal antitrust lawsuit that found Google...

Governor Newsome Drops Funding for Media from California State Budget

Report from SFiST In Brief – The latest budget proposal from California Governor Gavin Newsom (D) has eliminated funding for the News Transformation Fund, a state initiative to pay millions of dollars to California media companies. The fund was announced in 2024 as...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required